Sovereign Wealth Funds Shift from Gold to Bitcoin, Reveals Bitwise Institutional Report

When Bitcoin plummeted from $125,000 to $60,000, none of the 15 major institutions surveyed by Bitwise liquidated their positions; instead, many seized the opportunity to increase their holdings. Ryan Rasmussen, head of research at Bitwise, unveiled the firm’s inaugural institutional crypto adoption report, which details how pension funds, endowments, foundations, and sovereign wealth funds are incorporating Bitcoin into their strategies as a safeguard against currency debasement, often in tandem with gold.

Rasmussen emphasized that institutions viewed the market downturn as a strategic buying moment, underpinned by a long-term conviction in Bitcoin’s store of value. Their reluctance to sell during the bear market stems from a deep understanding of Bitcoin’s maturing ecosystem, where allocations are treated as foundational assets rather than speculative trades.

The report highlights significant allocations from industry giants, including Wells Fargo’s 2–3% Bitcoin position and similar 2–8% allocations from Fidelity and BlackRock. These moves are driven by a debasement thesis, where institutions seek to hedge against inflation and monetary policy risks. The emergence of Bitcoin ETFs has further smoothed market volatility, with $2.5 billion in weekly inflows providing a capital buffer that shallow downturns, reinforcing Bitwise’s view that $60,000 marked a resilient bottom.

Interestingly, institutions are adopting a dual approach by holding both Bitcoin and gold. While gold remains a traditional safe-haven asset, Bitcoin is prized for its digital scarcity and growth potential. Sovereign wealth funds, in particular, are actively divesting from gold to allocate more to Bitcoin, attracted by its higher risk-adjusted returns and role in diversifying against modern financial uncertainties.

Rasmussen concluded by noting Bitcoin’s low correlation with bonds, gold, and stocks, making it an effective portfolio diversifier. This characteristic allows institutions to reduce overall risk while capturing asymmetric upside, solidifying Bitcoin’s place in institutional portfolios as a strategic asset class.

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