Institutions maintain their crypto positions despite a 50% drop

The fall in the crypto market did not cause sales among the institutions tracked by Bitwise. Despite a decline of around 50%, none of the 15 structures surveyed reduced their exposure, and several strengthened their positions. Bitcoin remains at the center of these allocations, often as the first asset for these investors. Behind this stability, investors cite their long-term sustainable convictions, while Ether and Solana remain subject to precise exit conditions in their portfolios.

Strong resistance despite the market fall

Bitcoin was central to all institutions surveyed that held cryptocurrencies. Bitwise says it typically 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. Many even took advantage of the decline to buy more. Respondents did not cite falling prices as a sufficient reason to sell. Their responses instead focus on the changes affecting their beliefs.

THE report is based on interviews carried out at the end of March and in April. Bitwise surveyed professionals from endowments, foundations, public pension funds and sovereign wealth funds. Family offices, consultants and listed companies were also included in the sample. Crypto allocations represented 0.5% to 13% of investable assets, mostly 1% to 2%.

Conditions of sale remain linked to convictions

For these investors, a sale would depend above all on a regulatory change or a crisis of credibility in the sector. A failure of their investment strategy could also trigger a reduction in exposure. Thus, volatility alone does not constitute the main criterion mentioned. This distinction sheds light on their behavior during withdrawal.

Bitcoin was often considered a store of value, sometimes compared to gold. This perception reinforces its historic status in portfolios. Conversely, beliefs regarding Aether and Solana appeared less homogeneous. Some institutions had defined short horizons and specific sales conditions.

Several investors could sell Ether or Solana if the use of their networks does not benefit the tokens. Areas cited include stablecoins, decentralized finance and tokenization. An institution without Ether or Solana nevertheless widely used DeFi. According to Bitwise, it did not see how this activity could benefit the tokens.

Bitcoin ETFs become a preferred channel

Almost all of the institutions surveyed were using spot crypto ETFs or planning to do so. Some investors were moving away from private placements and direct custody. This development also concerns access to digital assets. The Bitwise report highlights this preference.

Bitcoin remains affected by this trend, since ETFs are among the vehicles used. However, a CoinShares 13F Report released in June indicates a 17% decline in professional exposure to US spot bitcoin ETFs in the first quarter. Hedge funds and brokers accounted for about 96% of that decline. The banks increased their exposure.

Data from Bitwise shows little price-related institutional exposure. The exit criteria relate to regulation, credibility of the sector and validation of the strategy. For bitcoin, this logic is accompanied by a historical place. For Ether and SOL, network usage remains monitored. The future trajectory will depend on the evolution of institutional beliefs. BTC maintains a central position, while other assets remain linked to their uses.