Institutions held crypto through 50% drawdown, Bitwise finds
Every institution interviewed that owned crypto held Bitcoin, usually as its largest asset; some set exit conditions for Ether and Solana.
Most institutions that held cryptocurrency through a significant market downturn continued their investments, according to a report by asset manager Bitwise. Conducted in late March and April, the interviews focused on professionals from various institutions including endowments, foundations, public pensions, sovereign wealth funds, multi-family offices, investment consultants, and public companies.
Every institution interviewed held Bitcoin (BTC) as its largest and longest-held position, with Ether (ETH) and Solana (SOL) considered smaller bets with shorter investment horizons. None of the institutions cited falling prices as a reason to sell their crypto assets; instead, they pointed to factors such as regulatory reversals, industry-wide credibility crises, or a failure of their investment thesis.
When asked about conditions that might prompt them to sell ETH or SOL, several institutions indicated that a lack of growth in network usage would be a trigger. Most institutions used spot crypto exchange-traded funds (ETFs) for their crypto allocations, with some shifting from private placements or direct custody towards ETFs. A 13F data report from CoinShares revealed that professional investors' reported US spot Bitcoin ETF exposure fell by 17% in the first quarter.
For most Bitcoin holders interviewed, it was their first, largest, and longest-held crypto asset, often viewed as a store of value alongside gold.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
