Crypto adoption is showing unusual staying power. Bitwise found that none of 15 major institutions cut their allocations during a roughly 50% market drawdown, while Bitcoin remained the common thread across their portfolios.
Bitwise published a study on September 23, 2026, on crypto adoption, indicating resilience as institutions continue to hold exposure despite a market drawdown of roughly 50%.
None of the 15 institutions surveyed between the fourth quarter of 2025 and the second quarter of 2026 had reduced their crypto allocations over the period. A number added to their positions. None of the institutions surveyed cited a drop in price as a catalyst for selling.
This study was based on interviews with senior investment professionals responsible for allocating to crypto at 15 large institutions.
The institutions surveyed represented endowments, foundations, public pensions, sovereign wealth funds, multi-family offices, investment consultants and public companies.
Bitwise study findings show that crypto adoption is not confined to institutions willing to hold assets only during rising markets. The firms found allocations remained in place despite a fall of about half the value of crypto markets over the period studied. Some institutions even augmented their exposure during the downturn.
Matt Hougan, the company’s chief investment officer, said the finding contradicted the notion that institutions are quick to sell during major market declines.
He said,
“Crypto markets fell roughly 50% between Q4 2025 and Q2 2026, yet not one institution we interviewed reduced its allocation during the sell-off, while several bought more.”
He also added that none of the institutions cited price as a reason to exit. This is significant because institutions normally operate within allocation frameworks. Bitwise interviews suggest that exposure may persist within these frameworks despite significant market fluctuations.
Bitcoin is the common asset among institutions that hold crypto. Every institution interviewed that owns crypto owns Bitcoin, and for almost all of them, Bitcoin represents the first, biggest, and longest-held digital asset.
As per the report, institutions generally regard Bitcoin as a store of value, with several pairing it with gold to protect against fiat debasement.
Ethereum and Solana, on the other hand, are treated as smaller theses. Bitwise found that institutions that hold either or both generally maintain smaller positions and shorter time horizons. Their decisions are informed by specific adoption and value-accrual theses.
Some institutions said they would sell Ethereum or Solana if meaningful adoption fails to emerge over the next few years.
The study also shows that spot exchange-traded funds are key enablers for institutional adoption. Almost every institution interviewed either uses or plans to use spot ETFs.
Bitwise said institutions cite lower cost, reduced operational complexity, and back-office simplicity. ETFs also fit more readily within existing infrastructure.
Institutional allocations to crypto remain relatively small, ranging from 0.5% to 13% of investable assets, with the majority of the institutions surveyed citing 1% to 2% as typical allocations. Exposure is split between ETFs, direct ownership, venture capital, and hedge funds.
Bitwise said some institutions use investment vehicles that do not show up in 13F filings. The report, therefore, argues that public ownership filings may understate total institutional ownership.
It expects a majority of institutional investors to hold crypto within five years. Its report builds its argument for majority adoption on the persistence of current allocations, Bitcoin ownership, and the use of spot ETFs.
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