The crypto market crash did not trigger sales among the institutions tracked by Bitwise. Despite a decline of about 50%, none of the 15 entities surveyed reduced their exposure, and several h
The crypto market crash did not trigger sales among the institutions tracked by Bitwise. Despite a decline of about 50%, none of the 15 entities surveyed reduced their exposure, and several have strengthened their positions. Bitcoin remains at the center of these allocations, often as the primary asset for these investors. Behind this stability, investors cite their durable long-term convictions, while Ether and Solana remain subject to specific exit conditions in their portfolios.
Bitcoin held a central position among all the institutions surveyed that held cryptocurrencies. Bitwise reports that it generally represented their largest and oldest position. For almost all of these investors, it was the first crypto asset adopted. This seniority distinguishes its treatment.
None of the 15 institutions reported reducing their allocations during the roughly 50% decline. Several even used the pullback to buy more. The respondents did not cite the price decline as a sufficient reason to sell. Their answers instead emphasized changes affecting their conviction.
The report is based on interviews conducted in late March and April. Bitwise surveyed professionals from endowment funds, foundations, public pension funds, and sovereign wealth funds. Family offices, consultants, and publicly traded companies were also included in the sample. Crypto allocations represented 0.5% to 13% of investable assets, mostly between 1% and 2%.
Start your crypto adventure safely with OKXThis link uses an affiliate program.For these investors, a sale would mainly depend on a regulatory change or a sector credibility crisis. A failure of their investment strategy could also trigger a reduction in exposure. Thus, volatility alone is not the main criterion mentioned. This distinction sheds light on their behavior during the pullback.
Bitcoin was often considered a store of value, sometimes compared to gold. This perception reinforces its historical status in portfolios. Conversely, convictions regarding Ether and Solana appeared less homogeneous. Some institutions had defined short time horizons and specific selling conditions.
Many investors might sell Ether or Solana if the use of their networks did not benefit the tokens. Cited fields include stablecoins, decentralized finance, and tokenization. One institution without Ether or Solana nonetheless widely used DeFi. According to Bitwise, it did not see how that activity could benefit the tokens.
Almost all surveyed institutions used spot crypto ETFs or planned to do so. Some investors moved away from private placements and direct custody. This evolution also concerns access to digital assets. The Bitwise report highlights this preference.
Bitcoin remains affected by this trend, as spot ETFs are among the vehicles used. However, a CoinShares 13F report published in June indicates a 17% drop in professional exposure to U.S. spot Bitcoin ETFs in the first quarter. Hedge funds and brokers represented about 96% of this decline. Banks, on the other hand, increased their exposure.
Bitwise data show that institutional exposure has little relation to price. Exit criteria focus on regulation, sector credibility, and strategy validation. For Bitcoin, this logic is supported by its historical significance. For Ether and SOL, network usage remains monitored. The upcoming trajectory will depend on the evolution of institutional convictions. BTC maintains a central position, while other assets remain linked to their uses.
