Institutional investors are treating digital assets as a durable satellite position rather than a trade to be abandoned at the first sign of trouble, according to new research from Bitwise Investments. The crypto-focused asset manager’s first Institutional Crypto Adoption Report found that the majority of institutions with crypto exposure hold between 1% and 2% of their portfolios in the asset class — and that none of the 15 major entities interviewed sold during a drawdown of roughly 50%.

The report, compiled from interviews with senior investment professionals at endowments, family offices, public pension funds, and sovereign wealth funds, offers a rare window into how some of the world’s largest allocators are positioning for…