Institutional investors held their crypto allocations steady during a roughly 50% market decline in late 2025, according to Bitwise Asset Management’s latest Institutional Crypto Adoption Report. None of the 15 institutions surveyed cut positions, while several increased exposure, despite the broader market’s downturn beginning in October 2025. The findings, based on interviews conducted in late March and April, highlight a resilience among institutional players amid significant price volatility.
Bitcoin (BTC) remained the dominant asset across all institutions, constituting their largest and longest-held position. Most treated it as a long-term store of value, often alongside traditional assets like gold. Ethereum (ETH) and Solana (SOL) were held as smaller, shorter-term bets, with conditions for potential exits tied to broader industry trends—such as stablecoin adoption, decentralized finance (DeFi) growth, or tokenization success. One institution that did not hold ETH or SOL cited extensive DeFi activity but saw no direct benefit to the underlying tokens.
Institutional crypto allocations ranged from 0.5% to 13% of investable assets, with most allocations clustering between 1% and 2%. The report also noted a shift toward spot crypto exchange-traded funds (ETFs), with nearly all surveyed institutions either already using them or planning to. Some investors had previously relied on private placements or direct custody but were transitioning to ETFs for greater liquidity and regulatory clarity.
Bitwise’s findings contrast with CoinShares’ 13F data, which showed a 17% decline in reported US spot Bitcoin ETF exposure in the first quarter of 2026, driven primarily by hedge funds and brokerages reducing positions while banks added to their holdings.
While Bitcoin’s conviction remained strong, Ethereum and Solana faced heightened scrutiny. Several institutions expressed willingness to exit ETH or SOL if network use growth failed to deliver tangible value, reflecting skepticism about their long-term viability in a shifting crypto landscape. The report underscores the divergent strategies among institutional investors, with Bitcoin anchoring stability amid broader market uncertainty.
