Key highlights:
- Bitwise finds that the recent crypto market crash hasn’t affected crypto institutional investments much
- None of the 15 institutions that Bitwise surveyed have reduced their crypto exposure
- Bitcoin remains one of the most selected cryptocurrencies among institutions
Institutional investors were largely unfazed by Bitcoin crashing around 50% between Q4 2025 and Q2 2026. According to asset manager Bitwise, none of the 15 institutions it surveyed reduced their crypto allocations despite sharp drops in asset prices. Some of them even purchased more tokens, highlighting their long-term confidence in the industry.
Bitwise finds institutions held onto crypto despite market crash
As per the Bitwise survey, the crypto market crash did not have a major impact on the crypto strategies of institutional investors. The asset manager talked with 15 institutions and found that none of them have reduced their exposure to crypto. The participants represented a diverse group of organizations, including endowments, foundations, public pension funds, investment consultants, and public companies.
It is worth noting that since the crypto market fell on October 11, 2025, cryptocurrencies went through a tough period, with prices falling to severe lows. The market fell by nearly 50%, with the global cap dropping from a high of $4.2 trillion in 2025 to a low of $2.06 trillion in 2026. Although the sector’s total capitalization has now recovered to $2.8 trillion, we are not yet in a fully-fledged bull market.
Institutional investors remain confident about the industry’s future, according to Bitwise. While none of the 15 institutions reduced their crypto investments, some of them even increased their allocations during the downturn. They didn’t see the crypto market drop as a significant reason to dump their holdings. Instead, they stated that their crypto investment decisions mainly depend on regulatory changes and credibility.
Bitcoin remains the top choice for institutions
Unsurprisingly, Bitcoin remained the most preferred cryptocurrency among institutional investors. Every institution that had exposure to crypto held Bitcoin in their portfolio. Most companies consider BTC as their biggest and longest-term crypto investment. Bitwise noted,
“Most treat bitcoin as a store of value with asymmetric upside, often paired with gold as a fiat debasement hedge. One endowment described its bitcoin position as an ‘emerging-to-established store-of-value’ play and a venture-style bet on the asset growing into a $20 trillion market over the next 5–15 years.”
But the approach was different for Ether and Solana, which constituted only smaller portions of institutional portfolios. Some of the institutions stated that they might sell these tokens if they didn’t provide strong enough returns.
Most institutions kept their crypto exposure between 1% and 2%, but the allocations ranged between 0.5% and 13% among the participants surveyed by Bitwise.
Institutions largely embrace crypto ETFs
Spot crypto ETFs have made it easier for institutions to invest in cryptocurrencies. Almost all the institutions interviewed by Bitwise have either already used crypto ETFs or plan to explore them.
Mainly, ETFs allow investors to hold crypto indirectly. It costs less to manage and requires less operational work. This is the main reason why institutions are moving from holding crypto directly to investing through ETFs. However, there are also institutions that do not show interest in ETFs. As Bitwise noted:
“A small number of institutions are deliberately not using ETFs. One sovereign wealth fund is building domestic custody infrastructure to satisfy a government mandate for direct control of the underlying crypto assets. One large public endowment has a policy that prohibits owning any spot commodity—even in the ETF format. Another institution mentioned that 13F disclosure of ETF positions creates a level of public visibility it would rather avoid.”
Source:: Institutions Refused to Sell Crypto Despite 50% Bitcoin Crash, Says Bitwise