Institutions Did Not Sell Cryptocurrency During the Downturn: Results of Bitwise Survey
A Bitwise survey of 15 wealth management firms (AUM ranging from hundreds of millions to tens of billions) found that none of the institutions reduced their crypto allocations during the market's ~50% decline from October 2025 to April 2026. Some even increased their positions.
The survey revealed a firm consensus only on Bitcoin among respondents. Every institution holding crypto owns Bitcoin, which is typically their first, largest, and longest-held crypto position. Most view it as a store of value with growth potential, often comparing it to gold.
In contrast, allocations to Ethereum and Solana are more selective, with smaller positions, shorter investment horizons, and defined exit strategies. Some institutions do not hold them, struggling to classify them within traditional frameworks.
Overall crypto allocations are generally modest, mostly between 1-2% of investment assets. Institutions commonly use or plan to use spot crypto ETFs, citing lower costs and operational simplicity, though some opt for direct custody.
Key obstacles to increasing allocations include custody security, the need to justify the investment thesis, portfolio structure, internal procedures, reputational risk, and asset classification. Career risk for investment managers was also noted.
Positive catalysts for further institutional adoption are seen as regulatory clarity and more public investments by peer institutions. Negative risks include a major industry crisis, technical failures, lack of real utility for Ethereum/Solana, or if blockchain growth fails to create token value.
cryptonews.ru09/24 08:01
