Institutional crypto adoption is stickier than markets assumed, Bitwise finds

A new Bitwise report reveals major institutions held - and some bought more - through a 50% crypto drawdown.

Institutional crypto adoption is proving far more durable than conventional wisdom suggests, according to a report from Bitwise Asset Management, a San Francisco-based crypto asset manager with $9 billion in client assets.

The firm's inaugural Institutional Crypto Adoption study, drawn from in-depth interviews with senior investment professionals at 15 of the world's largest institutions - including endowments, public pension funds, sovereign wealth funds, foundations, multi-family offices, and public companies - found that not one institution reduced its crypto allocation through a roughly 50% market drawdown between October 2025 and April 2026. Several bought more.

"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," said Matt Hougan, Chief Investment Officer at Bitwise Asset Management. "When asked what would prompt them to exit, none of them said price. This cuts against the common assumption that institutions are weak hands in a crypto drawdown."

The finding has direct implications for financial advisors navigating client conversations about crypto exposure and portfolio construction — a topic InvestmentNews has been tracking closely as advisor crypto allocations hit an all-time high in 2025.