Institutions Maintain Crypto Holdings Amid Market Decline
- None of the 15 institutions interviewed by Bitwise cut their crypto allocations during a roughly 50% market drawdown.
- All institutions that owned crypto held Bitcoin (BTC) as their largest and longest-held position.
- Crypto allocations ranged from 0.5% to 13% of investable assets, with most between 1% and 2%.
- Almost every institution used or planned to use spot crypto exchange-traded funds.
- Several institutions indicated they might sell Ether (ETH) or Solana (SOL) if network growth did not translate into value for these tokens.
The findings highlight a strong conviction in Bitcoin, with institutions viewing it primarily as a store of value, similar to gold. In contrast, the outlook for ETH and SOL remains uncertain, contingent on future developments in decentralized finance and related sectors.
Overall, despite significant market challenges, institutions have maintained their crypto positions, with Bitcoin consistently serving as the cornerstone of their portfolios.(Source)
