Institutions Hold Bitcoin Through 50% Drop, No One Cuts Exposure
A Bitwise survey of 15 institutions shows crypto allocations stayed steady despite a half‑price fall, with many using spot ETFs.
The short answer
Bitwise interviewed 15 major institutions and found that none reduced their crypto exposure during a roughly 50% market decline from October 2025 to April 2026. Allocations ranged from 0.5% to 13% of investable assets, most between 1% and 2%, and every holder owned Bitcoin. Almost all use or plan to use spot Bitcoin ETFs, indicating confidence in the asset despite the downturn.
What happened
Institutions kept their crypto allocations steady as the market fell about 50% between October 2025 and April 2026. None of the 15 surveyed cut their exposure, and several added to their positions. Crypto allocations varied from 0.5% to 13% of investable assets, with most between 1% and 2%. Every crypto‑holding institution owned Bitcoin as its primary asset.
Why it matters
The steady exposure signals confidence in Bitcoin's role as a store of value and suggests that institutional demand may grow as more firms adopt spot crypto exchange‑traded funds. Spot ETFs lower custody costs and simplify reporting, making crypto easier to approve internally. Some investors are also adding market‑neutral strategies to manage volatility, indicating a maturing approach to crypto risk.
What is still unclear
- One sovereign investor said building the legal and regulatory infrastructure for a crypto allocation could take more than a year, leaving the timing of future sovereign fund exposure uncertain.
Questions readers ask
Did any of the surveyed institutions reduce their crypto exposure during the recent market decline?
No, none of the 15 institutions cut their allocation during the roughly 50% price drop.
What size allocations do institutions typically hold in crypto?
Allocations range from 0.5% to 13% of investable assets, with most institutions holding between 1% and 2%.
Are institutions moving toward spot Bitcoin ETFs?
Almost every institution interviewed either already uses spot crypto ETFs or plans to, citing lower costs and simpler administration.
How long might sovereign wealth funds take to finalize crypto allocations?
One sovereign investor indicated that building the necessary legal and regulatory framework could take more than a year.