Bitwise Asset Management has unveiled a new report on 2026-09-23, shedding light on how major institutions approach cryptocurrency investments beyond Bitcoin. The “Institutional Crypto Adoption” study indicates that leading financial players largely perceive Ethereum (ETH) and Solana (SOL) as “thesis-dependent bets” or “early-stage tech bets.” This nuanced view marks a significant distinction from their staunch conviction in Bitcoin.
The report, based on in-depth interviews with senior investment professionals, highlights that these institutions hold smaller positions in Ethereum and Solana. Their investment horizons for these assets are notably shorter. Crucially, they’ve established explicit exit conditions, contingent on whether real-world value ultimately accrues to the underlying tokens.
Bitcoin: Core of Institutional Asset Management
The report stems from three months of in-depth interviews, conducted between late March and April 2026. Bitwise spoke with senior investment professionals responsible for crypto allocation decisions at 15 of the world’s largest institutions. These included endowments, foundations, public pension funds, multi-family offices, investment consultants, sovereign wealth funds, and public companies.
Bitcoin stands alone as the unequivocal institutional conviction asset, according to Bitwise’s extensive findings. Every single institution interviewed that owns crypto also maintains a position in Bitcoin. For almost all, it was their initial foray into the crypto market, representing their largest and longest-held digital asset.
These institutions frequently frame Bitcoin as a robust store of value, often pairing it with gold as a hedge against fiat currency debasement. This unwavering commitment underscores Bitcoin’s established role within diversified institutional portfolios. It highlights its perceived stability compared to newer digital assets. This approach also sheds light on broader trends impacting Bitcoin’s long-term future.
Ethereum Institutional Adoption Tied to Real-World Utility
In stark contrast to Bitcoin, the Bitwise report emphasizes that institutions perceive Ethereum and Solana differently. They lack what Bitwise describes as a “clear value-accrual thesis” in the same vein as Bitcoin. Instead, these assets are primarily valued for their potential real-world utility and technological innovation.
This perspective signals that Ethereum institutional adoption hinges on practical application rather than simply being a store of value. Institutions are not viewing ETH or SOL as direct rivals to Bitcoin. Their investments reflect a belief in the networks’ ability to host and power functional decentralized applications and services.
Institutions engaged in the survey clarified that their investment in ETH and SOL comes with specific triggers for selling. They explicitly stated they would divest their holdings if meaningful adoption doesn’t materialise within the next few years. This strategic approach underscores a focus on fundamental utility and ecosystem growth, rather than just speculative price movements.
Thesis Failure, Not Price, Drives Divestment
A surprising finding from the report was that not a single investor named price as a reason for selling their crypto holdings. Instead, the primary triggers for divestment included a “thesis failure” related to the asset’s core value proposition. Other critical factors were a “regulatory reversal” or a broader “industry-wide credibility crisis.”
This contradicts the common assumption that institutions are “weak hands” during a crypto market downturn. Their decisions appear rooted in a deeper, fundamental assessment of the assets. They focus on long-term viability rather than short-term market fluctuations.
Institutional Conviction Endures Market Drawdowns
The study challenged another widespread misconception: that institutional investors would flee during market volatility. Between Q4 2025 and Q2 2026, the crypto market experienced a significant drawdown, roughly halving in value. Impressively, not one of the 15 institutions interviewed reduced its crypto allocation during this period.
In fact, several institutions actively bought more digital assets during this downturn, defying conventional market wisdom. During this period, Ethereum itself fell 25.4% in Q2 2026, while Bitcoin saw a 14.2% drop. This steadfastness underlines the long-term strategic view these major players adopt.
Crypto allocations among these surveyed institutions already show considerable variation, ranging from 0.5% to 13% of their total investable assets. However, most allocations typically fell between 1% and 2%. This demonstrates a measured but firm commitment to the asset class.
Varied Strategies and Bitwise’s Market Insights
Bitwise’s research covered a broad spectrum of major institutions, including endowments, foundations, public pension funds, multi-family offices, investment consultants, sovereign wealth funds, and public companies. The crypto allocations among these interviewees ranged from 0.5% to 13% of their investable assets, with most falling between 1% and 2%.
Notably, family offices reported the highest crypto allocations, demonstrating a greater appetite for these emerging assets. Conversely, sovereign wealth funds maintained the lowest positions. This disparity often stems from more stringent regulatory mandates or conservative investment policies governing public funds.
Bitwise Asset Management, which manages $9 billion in client assets as of June 30, 2026, serves over 5,500 private wealth teams and 21 banks. The firm predicts that a majority of institutional investors will hold crypto within five years. This suggests an ongoing and expanding integration into mainstream finance, complementing Bitwise’s ETP offerings.
Bitwise Adapts its Own Altcoin Offerings
Bitwise’s own product strategy reflects the dynamic nature of altcoin assessment. Chief Investment Officer Matt Hougan had previously expressed optimism for Solana in August 2025, anticipating new all-time highs driven by ETF inflows. The firm has actively pursued this, launching a Solana Staking ETP in Europe and continuing to seek a spot Solana ETF in the US, despite ongoing SEC delays.
However, Bitwise also recently announced plans to close and liquidate the Bitwise Trendwise Ethereum and Treasuries Rotation Strategy ETF (AETH) by October 13, 2026. This move, alongside the nuanced findings of their institutional report, highlights constant evaluation. It shows how even major asset managers make strategic adjustments to their product lines.
Looking Ahead: Strategic Bets on Decentralized Futures
The Bitwise report paints a clear picture: institutional investors are not monolithic in their approach to cryptocurrencies. While Bitcoin is a foundational store of value, Ethereum and Solana represent calculated, thesis-driven bets on future technological adoption. Their success in attracting and retaining institutional capital depends squarely on their ability to deliver real-world utility and significant network growth.
This strategic patience, coupled with a willingness to increase allocations during drawdowns, signals a maturing market. Institutions are playing a long game, focusing on fundamental value and use cases. Their decisions will continue to shape the trajectory of major digital assets like Ethereum and Solana in the years to come.