Institutional demand for crypto is developing beyond public announcements, according to research by Bitwise based on interviews with 15 major institutions conducted between late March and April. The firm found that existing holders maintained their positions through a market decline of roughly 50% between October 2025 and April 2026, while several prospective investors advanced their due diligence processes.
Institutions Held Through Market Volatility
None of the 15 institutions interviewed by Bitwise reduced their crypto allocation during the market decline, and several increased their holdings, according to the firm's institutional crypto adoption report published September 23. Prospective buyers were also part of the group studied, with several participants who had not yet allocated to crypto in advanced stages of evaluation. Multiple sovereign wealth funds were actively examining sizable positions, though their decision-making timelines may extend beyond public disclosures.
One sovereign investor told Bitwise that establishing the legal and regulatory infrastructure for an allocation could take more than a year. Institutions cited longer-term investment theses rather than price movements as their reasoning. An investment consultant quoted in the report stated: "If the thesis is right, given the S-curve of adoption, selling now would be selling too early."
A separate wealth manager poll discussed by Bitwise found that 60% of respondents planned a crypto allocation within a year, though 67% reported having no crypto holdings at the time of the survey.
Position Sizes and Structure
Crypto allocations among the 15 interviewees ranged from 0.5% to 13% of investable assets, with most between 1% and 2%. Family offices reported the largest positions and could often act with approval from a single principal, while sovereign wealth funds held smaller allocations and worked through more layers of approval. Allocation size tracked almost inversely with the number of people required to approve it.
Every institution that owned crypto held bitcoin as its first, largest, and longest-held position. Some also held ether or solana in smaller amounts, though investors attached conditions to these holdings based on network utility and token value generation.
Almost every institution interviewed either used spot crypto exchange-traded funds or planned to use them, citing lower costs and simpler administration compared to other methods. Public disclosures show examples of substantial positions already in place. Two Abu Dhabi investment vehicles held nearly $764 million in a Blackrock bitcoin ETF at the end of June without reducing their combined holdings during the second quarter.
Outlook for Further Adoption
Bitwise forecasts that a majority of institutional investors will hold crypto within five years, based on its analysis of adoption trends. The firm argues that each credible public allocation lowers the reputational cost of investing for subsequent institutions. Regulatory progress and growing peer adoption were identified as factors that could encourage more institutions to enter the market.
A broader survey by Coinbase and EY-Parthenon of 351 institutional investors conducted in January found that nearly three-quarters planned to increase crypto allocations in 2026. Nearly half of respondents reported greater attention to risk management, liquidity, and position sizing amid market volatility.
