Institutional investors are maintaining crypto exposure despite a punishing drawdown, according to a Bitwise survey. The firm interviewed 15 institutions and found none cut allocations during a period when the market fell by about 50% between Q4 2025 and Q2 2026. Allocations remain relatively small across portfolios, ranging from 0.5% to 13% of investable assets, with most institutions holding between 1% and 2%.
Bitcoin remains the institutional favorite. Every institution that owns crypto also owns BTC, with many comparing it to gold as a store of value and a hedge against currency debasement. Some hold Bitcoin as a standalone position, while others use market-cap-weighted baskets that still leave about 80% of crypto exposure in BTC. Ethereum and Solana face a different test: institutions generally keep smaller positions and have shorter investment timelines tied to specific adoption and value-accrual expectations, while some avoid them entirely.
Spot crypto ETFs have changed how institutions enter the market. Almost every surveyed institution either already uses these funds or plans to use them, with several moving from direct crypto custody to ETFs because of lower costs, less operational work, and simpler reporting. Still, some face rules preventing spot commodity exposure or prefer direct control through their own custody systems.
Meanwhile, Bitcoin held near $84,000 after pulling back from highs above $87,000. U.S. spot Bitcoin ETFs recorded $191 million in net inflows on Thursday, the third consecutive day of lower inflows after Monday delivered nearly $999 million, the strongest single-day total of 2026 so far. Over six trading days, Bitcoin ETFs accumulated roughly $2.8 billion in fresh capital. The week of September 21 through September 25 produced net inflows every trading day, reaching $2.39 billion.
BlackRock's iShares Bitcoin Trust led with $1.16 billion for the week, followed by Fidelity's FBTC with $701.6 million, ARK 21Shares' ARKB with $294.7 million, and Morgan Stanley's MSBT with $203.3 million. Ether ETFs attracted $689.8 million during the same period, while Solana ETFs added $188.1 million, including $86.7 million on Friday alone.
Rising headwinds tested Bitcoin's strength. The U.S. 10-year Treasury yield climbed above 5.2%, reaching levels not seen since 2007. Regulatory uncertainty also returned as SEC Commissioner Hester Peirce prepared to leave the agency on October 2, and the Senate failed to advance the Digital Asset Market Clarity Act. Strategy, the largest corporate Bitcoin holder, proposed daily dividend accruals for four preferred stock offerings to improve liquidity.
