Institutional investors demonstrated resilience during the recent cryptocurrency market downturn, with none of the 15 organizations interviewed by asset manager Bitwise reducing their digital asset holdings after a 50% market decline. Instead, several participants took the opportunity to increase their allocations.
Institutional approaches to crypto allocations
Bitwise’s Institutional Crypto Adoption Report, based on interviews conducted in late March and April during a significant market pullback that began in October 2025, canvassed investment professionals from endowments, foundations, public pensions, sovereign wealth funds, multi-family offices, investment consultants, and public companies.
Within this group, every institution with crypto exposure held Bitcoin, typically as both the largest and the longest-standing position. Positions in Ether and Solana were smaller and often accompanied by more defined conditions for selling, as well as shorter investment timeframes.
Crypto allocations among surveyed institutions ranged between 0.5% and 13% of investable assets. However, most reported allocations in the 1%–2% range. Bitwise observed that nearly all participants either currently used spot cryptocurrency exchange-traded funds (ETFs) or planned to do so. Several investors reported shifting away from private placements or direct custody toward ETF vehicles.
CoinShares, in a 13F data report published in June, observed that U.S. spot Bitcoin ETF exposure among professional investors decreased by 17% in the first quarter. Hedge funds and brokerages accounted for approximately 96% of this reduction, while banks increased their exposure to these products.
When asked about the circumstances that could lead to selling, institutional respondents did not cite falling prices. Instead, potential triggers included a significant regulatory reversal, an industry-wide crisis of trust, or the collapse of their core investment thesis.
BTC seen as core holding, scrutiny on ETH and SOL
Almost all institutions with digital asset exposure identified Bitcoin as their initial and largest holding. The majority positioned BTC as a store of value asset, often alongside gold in their broader portfolios.
Conviction surrounding Ether and Solana remained mixed. Several institutions stated they would consider reducing or exiting exposure to ETH or SOL over the coming years if ecosystem growth in areas like stablecoins, decentralized finance, or tokenization failed to deliver tangible value to the tokens themselves.
Bitwise reported that at least one institution with neither Ether nor Solana holdings had previously utilized decentralized finance applications, but found no clear correlation between this activity and gains for the underlying tokens.
Some respondents specified that a failure of network growth to result in benefits for either token would likely result in a decision to divest these assets.
Given this cautious approach to Ether and Solana, close market monitoring, including investor behavior and emerging trends, has become increasingly important for institutions. In the meme token segment, an internet trend can drive millions of dollars in trading interest within days. Fomo App data recently showcased a trade in “Niu Lai” that transformed a $99 investment into nearly $370,000, demonstrating the rapid pace and unpredictability of this sector. Tracking prices alone does not suffice; insight into timing and token selection plays a critical role for investors. Fomo App merges token discovery and trading with social feeds, investor rankings, and trade notifications, offering a platform for those following meme tokens and notable trading activity.
