Sovereign Fund Treats Bitcoin as Reserve Asset

One sovereign wealth fund has begun treating Bitcoin as a direct substitute for traditional reserve assets like gold, according to Bitwise Asset Management's Institutional Crypto Adoption Report.

The report, based on interviews with senior investment professionals across 15 large institutions conducted between March and April 2026, found that during a 50% drawdown from approximately $125K in Q4 2025 to around $60K in Q2 2026, not a single institution surveyed reported reducing its Bitcoin holdings.

Every institution holding crypto assets in the survey held Bitcoin as its first, largest, and longest-held position. Most opted for a more restrained 1-2% allocation, with sovereign wealth funds constrained by multi-layered governance frameworks.