Bitwise: Institutional allocations remained unchanged during the crypto market's sharp downturn, with some institutions even boosting their holdings.

Bitwise has released a report showing that after conducting in-depth interviews with 15 investment professionals at large global institutions responsible for crypto asset allocation, none of the surveyed firms cut their crypto allocations even as the crypto market dropped roughly 50% between Q4 2025 and Q2 2026—with some institutions even increasing their holdings. The report notes all surveyed institutions holding crypto own Bitcoin (BTC). For most, BTC is their first allocated crypto asset, their largest holding, and the one they’ve held the longest. It is generally viewed as a store of value and often used alongside gold as a hedge against fiat currency devaluation. In contrast, allocations to Ethereum (ETH) and Solana (SOL) are smaller, with shorter holding periods, and come with exit conditions tied to the underlying tokens’ value capture. Some institutions said they would consider selling these assets if meaningful adoption and use cases do not emerge in the coming years. In terms of allocation scale, crypto assets account for 0.5% to 13% of surveyed institutions’ investable assets, with most concentrated between 1% and 2%. Investment methods include spot ETFs, direct holdings, venture capital, and hedge funds. Additionally, Bitwise states that spot ETFs are transforming how institutions access crypto markets. Almost all surveyed institutions already use or plan to use spot ETFs, primarily due to their lower overall costs, reduced operational burden, and closer alignment with traditional investment products in back-office operations.