Major institutional investors maintained their cryptocurrency allocations during a roughly 50 percent market decline from October 2025 to April 2026. None of the 15 institutions interviewed by Bitwise reduced their positions during this period, and several actually increased their holdings, according to the firm's institutional crypto adoption report published Sept. 23.
Bitwise conducted these interviews between late March and April. Existing crypto holders remained committed to their allocations, with some adding capital during the downturn.
Several institutions that had not yet allocated to crypto were in advanced stages of due diligence. Multiple sovereign wealth funds were actively examining sizable positions, indicating a pipeline of potential new capital entering the market.
One sovereign investor told Bitwise that establishing the necessary legal and regulatory infrastructure for an allocation could take more than a year. Public disclosures of these new positions may appear with a lag.
An investment consultant quoted in the report articulated the long-term view held by these institutions: "If the thesis is right, given the S-curve of adoption, selling now would be selling too early." This perspective reflects conviction in crypto's growth trajectory.
Bitwise Head of Research Ryan Rasmussen discussed a separate poll on Sept. 8, revealing further institutional interest. In that poll, 60 percent of wealth managers planned a crypto allocation within the next year, despite 67 percent having no crypto exposure at the time of the survey.
Allocations among Bitwise's interviewees ranged from 0.5 percent to 13 percent of investable assets. Most institutions held between one percent and two percent of their portfolios in crypto. Family offices typically reported the largest positions, often requiring approval from only one principal. Sovereign wealth funds generally held smaller allocations, facing more layers of internal review that impacted both the size and speed of their investment decisions.
Bitcoin was the primary crypto holding for every interviewee that owned digital assets. It served as their first, largest, and longest-held crypto position. Some institutions also held Ether or Solana, but in smaller amounts and often with conditions tied to network usage and value generation for their tokens.
Access to crypto has improved for allocators. Nearly every institution interviewed by Bitwise either used or planned to use spot crypto exchange-traded funds (ETFs). They cited lower costs and simpler administration as key benefits of these regulated products.
Publicly disclosed holdings offer concrete examples of significant institutional positions. Two investment vehicles based in Abu Dhabi held nearly $764 million in BlackRock Bitcoin ETF shares at the end of June. These vehicles did not reduce their combined net share count during the second quarter, demonstrating sustained conviction.
