Institutional investors are keeping their crypto exposure steady despite the intense turmoil between Q4 2025 and Q2 2026, according to a survey by Bitwise.
The firm interviewed 15 institutions and found that none cut their allocation during a period when the market fell by about 50%.
Bitcoin Is the Institutional Favorite
Crypto allocations remain relatively small across the portfolios surveyed and range from 0.5% to 13% of investable assets. Most institutions hold between 1% and 2%. Their exposure is spread across ETFs, direct crypto holdings, venture capital, and hedge funds. The survey found that institutions are not stepping away from crypto. Some are maintaining their current targets, while others are still working toward higher allocations.
Several investors are also moving away from illiquid private placements. Some are even adding market-neutral strategies to reduce volatility and make crypto investments easier to approve internally. Bitwise said the debate is increasingly focused on how much crypto to hold and which investment vehicles to use, rather than whether to invest at all.
Institutional investors are also taking different approaches when it comes to Bitcoin, Ethereum, and Solana.
It is no surprise that Bitcoin remains the strongest point of conviction among those interviewed. Every institution that owns crypto also owns BTC. Many see it as a store of value and a hedge against currency debasement, often comparing it with gold. Some institutions hold Bitcoin as a standalone position, while others use a market-cap-weighted basket that still leaves around 80% of their crypto exposure in BTC.
Ethereum and Solana, however, face a different test. Bitwise found that institutions that own them generally keep smaller positions and have shorter investment timelines. Their decisions are tied to specific adoption and value-accrual expectations. Some investors avoid the two assets entirely because they do not see a clear link between blockchain activity and token value.
Others treat them as venture-style technology bets. Institutions holding these assets are watching real-world usage, transaction activity, and fees.
ETFs Change the Game
Meanwhile, spot crypto exchange-traded funds have changed the way institutions enter the market. Almost every institution interviewed either already uses these funds or plans to use them. Several investors moved from direct crypto custody to ETFs as they cited lower costs, less operational work, and simpler reporting.
Institutions still holding private crypto vehicles are also looking at ETFs. Many see better liquidity and more flexibility for portfolio rebalancing.
However, not every player is making the switch. Some face rules that prevent them from holding spot commodities, including through ETFs. Others want direct control of crypto assets and are building their own custody systems. One institution also raised concerns about public disclosure of ETF holdings through 13F filings.
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