New Delhi: Fifteen institutional investors interviewed by Bitwise maintained their cryptocurrency allocations through a market decline of roughly 50% between October 2025 and April 2026, while some increased their exposure during the downturn, according to a new institutional crypto adoption report.
The interviews were conducted between late March and April and covered institutions at different stages of cryptocurrency adoption. Bitwise said some investors were already holding digital assets, while others were conducting due diligence before making their first allocation. Several sovereign wealth funds were also examining potentially large positions.
The findings offer a snapshot of how a group of institutional investors approached crypto during a period of significant market volatility. They do not represent all institutional investors globally.
Institutions maintained crypto exposure
According to Bitwise, none of the 15 institutions interviewed reduced its cryptocurrency allocation during the market decline.
Several participants instead increased their holdings, while some institutions that had not yet invested were progressing through internal due-diligence processes.
One sovereign investor told Bitwise that establishing the legal and regulatory infrastructure required for a cryptocurrency allocation could take more than a year. This indicates that institutional adoption can involve lengthy approval and compliance processes even when investment interest exists.
The institutions also differed considerably in the size of their crypto allocations. Bitwise said allocations among the interviewed investors ranged from 0.5% to 13% of investable assets, with most falling between 1% and 2%.
Family offices generally reported larger allocations and could sometimes make investment decisions with approval from a single principal. Sovereign wealth funds tended to have smaller allocations but faced more layers of internal review.
Bitcoin remains the primary institutional choice
Bitcoin was the common cryptocurrency among every institution in the Bitwise interviews that already held digital assets.
The report said Bitcoin was generally the first, largest and longest-held cryptocurrency position within these portfolios.
Some institutions also held Ethereum or Solana, although these positions were generally smaller. Investors reportedly attached specific conditions to such holdings, including questions around network usage and whether increased activity would translate into value for the respective tokens.
The findings underline the continued importance of Bitcoin within institutional cryptocurrency portfolios, even as investors consider exposure to other digital assets.
Spot Bitcoin ETFs simplify access
Bitwise also found that nearly every institution interviewed either used spot cryptocurrency exchange-traded funds or planned to use them.
The report said institutions viewed these products as providing simpler administration and lower costs compared with managing cryptocurrency directly.
A spot Bitcoin ETF gives investors exposure to Bitcoin’s price through shares held in a brokerage account, while the fund itself handles custody of the underlying Bitcoin.
Bitwise also cautioned that publicly available regulatory filings do not provide a complete picture of institutional cryptocurrency ownership because some investors use investment structures that do not appear in Form 13F disclosures.
This means the size of institutional crypto exposure cannot necessarily be determined from publicly reported holdings alone.
Abu Dhabi investors hold major Bitcoin ETF positions
The report pointed to publicly disclosed holdings involving two Abu Dhabi investment vehicles as an example of institutional exposure already in place.
Together, the two vehicles held nearly $764 million worth of BlackRock Bitcoin ETF shares at the end of June, according to the report.
Their combined net share count did not decline during the second quarter.
Bitwise noted that these publicly disclosed positions were separate from the anonymous institutions included in its 15-investor interview group.
The example illustrates how institutional cryptocurrency exposure can be established through regulated investment products rather than direct ownership of digital assets.
More institutions are considering crypto
The Bitwise report also identified several potential new institutional buyers.
Some investors that did not yet have cryptocurrency allocations were reportedly in advanced stages of due diligence. Several sovereign wealth funds were also examining potentially significant positions.
However, interest or due diligence does not necessarily result in an investment. Institutional decisions can take months or years because of regulatory, legal, risk-management and governance requirements.
Bitwise expects institutional adoption to continue expanding as investors complete their reviews and more allocations become publicly visible.
The firm projects that a majority of institutional investors will hold cryptocurrency within five years. This is a Bitwise forecast rather than an observed result from the 15 interviews.
Wealth managers also show growing interest
A separate poll discussed by Bitwise Head of Research Ryan Rasmussen on September 8 found that 60% of surveyed wealth managers planned to allocate to cryptocurrency within a year.
At the time of that poll, 67% of respondents had no cryptocurrency allocation.
The survey represents a different group from the 15 institutional investors interviewed for the Bitwise report and therefore should not be directly treated as confirmation of the same investment behaviour.
Another survey by Coinbase and EY-Parthenon, involving 351 institutional investors, found that nearly three-quarters planned to increase cryptocurrency allocations in 2026. That survey was conducted in January and measured investment intentions among a different institutional population.
Nearly half of those respondents also reported paying greater attention to risk management, liquidity and position sizing amid market volatility.
Bitcoin often paired with gold
The Bitwise interviews also provided insight into how some institutions categorise cryptocurrency within their portfolios.
Institutions often paired Bitcoin exposure with gold, while cryptocurrency allocations were sometimes placed within technology or innovation categories.
Bitwise identified regulatory developments and greater participation by other institutional investors as factors that could encourage additional adoption.
The report suggests that institutional cryptocurrency investment is increasingly being considered within broader portfolio construction rather than solely as a speculative trading activity. However, the approach differs among investors depending on their risk policies, investment mandates and regulatory requirements.
Institutional adoption remains a developing trend
The Bitwise findings point to continued institutional interest in cryptocurrency despite periods of substantial market volatility.
The 15 institutions interviewed did not reduce their allocations during the roughly 50% market decline examined by the report, and some increased their positions. At the same time, several prospective investors were still working through due diligence rather than committing capital.
Bitcoin remained the common asset among existing institutional crypto holders in the study, while spot ETFs emerged as a widely considered route for obtaining exposure.
Bitwise expects institutional adoption to expand over the coming years, but its five-year projection remains a forecast rather than a guaranteed outcome.
The report therefore provides evidence of continued institutional engagement with crypto while also showing that adoption is taking place at different speeds and through different investment structures.