Institutional Investors Held Bitcoin Through 50% Plunge, Bitwise Survey Finds

A recent survey of 15 large institutional investors by asset manager Bitwise found that none sold their Bitcoin holdings during a severe market downturn, with some even increasing their positions. The findings suggest that major financial players are maintaining a long-term conviction in the cryptocurrency despite significant price volatility.

Unfazed by Market Correction

The in-depth interviews were conducted between late March and April 2026, following a period from October 2025 to April 2026 when the crypto market experienced an approximate 50% decline. The surveyed group included university endowments, pension funds, sovereign wealth funds, family offices, and public companies with assets ranging from hundreds of millions to tens of billions of dollars.

According to the report, which was based on interviews with clients managing over $9 billion in assets, every institution held onto its Bitcoin allocation. Many of the participants had also held their positions through a similar 50% drop in 2022, indicating an investment strategy that looks beyond short-term price movements.

A Long-Term Strategic Allocation

The survey revealed that these institutions' commitment is underpinned by a specific investment thesis and conservative portfolio construction. Key takeaways include:

Ad

• Small Allocations: Cryptocurrency allocations were generally small, ranging from 0.5% to 13% of investable assets, with most falling between 1% and 2%. This limited exposure helps manage the impact of volatility on the overall portfolio.
• Bitcoin as 'Digital Gold': Bitcoin was widely viewed as a store-of-value asset, similar to gold. There was less appetite for Ethereum and other alternative coins, which were seen as carrying higher risk if they fail to achieve widespread real-world application in the coming years.
• Early Adoption Phase: One investment advisor noted that it is too early to sell, likening the current stage to the beginning of a technology S-curve of adoption.

Broader Market Context

While the Bitwise survey points to institutional resolve, public filings present a more mixed picture. A Q1 2026 13F filing disclosed that Harvard University's endowment had reduced its spot Bitcoin ETF position by 43%. In contrast, two Abu Dhabi sovereign wealth funds reportedly maintained their full positions through a Q2 price drop.

Bitwise suggests that official filings may understate the true scale of institutional holdings, as some investors use structures that do not require public disclosure. The firm identified governance, operational readiness, and reputational concerns as the primary factors currently preventing institutions from increasing their crypto allocations. Looking ahead, Bitwise anticipates most institutions will continue to hold their crypto assets over the next five years.