Bitwise Survey Finds Zero Institutions Sold Crypto During 50% Drawdown

Bitwise Asset Management conducted a survey of 15 institutional investors to examine how they managed their cryptocurrency allocations during a market correction of approximately 50% from peak levels. The research captured institutional behavior during extreme market stress, a period when many retail investors historically reduce or exit digital asset positions entirely. The methodology centered on direct engagement with the 15 participating institutions, which included a mix of fund managers, family offices, and other professional allocators.

The central result is that none of the 15 institutions reduced their cryptocurrency positions during the 50% drawdown. This finding stands in sharp contrast to typical market behavior during severe corrections, where fear-driven selling often accelerates losses. The complete absence of sell-offs suggests that professional allocators treated the drawdown as a temporary market event rather than a fundamental breakdown in the asset class. Several institutions went further and increased their crypto allocations during the drawdown, indicating that some professional investors viewed the correction as a buying opportunity.

Bitcoin emerged as the dominant institutional holding, representing the largest and longest-held cryptocurrency across the surveyed portfolios. The survey recorded a minimum crypto allocation of 0.0% among the 15 institutions, indicating that at least one participant held no crypto exposure at the time of the survey. Beyond Bitcoin, the survey identified Ethereum and Solana as assets held by participating institutions, though exit conditions for these positions were undefined.

The demonstrated willingness of institutional investors to hold through a 50% drawdown, and in some cases add to positions, suggests that professional capital may provide a stabilizing influence during future market corrections. If this holding behavior is representative of the wider institutional investor base, it could reduce the severity of drawdowns over time as more professional capital enters the market with long-term mandates.