Sovereign Wealth Funds Reportedly Selling Gold to Purchase Bitcoin, Says Bitwise

According to Bitwise Asset Management's inaugural Institutional Crypto Adoption Report, at least one sovereign wealth fund has been divesting from gold and foreign exchange reserves to invest in Bitcoin. This finding was shared by Ryan Rasmussen, Bitwise's Head of Research, during a presentation on September 29.

The report, which is based on interviews with senior investment professionals from 15 large institutions conducted between March and April 2026, indicates a significant trend: during a substantial market decline where Bitcoin's price dropped from approximately $125K to around $60K, none of the surveyed institutions reported selling their Bitcoin holdings. Instead, many took the opportunity to buy more.

Most institutions in the survey view Bitcoin and gold as complementary assets, both serving as hedges against fiat currency debasement. The allocations of Bitcoin among these institutions varied from 0.5% to 13% of their total investable assets, with many opting for a conservative 1-2% allocation.

Interestingly, the report also noted that Bitcoin ETF inflows reached up to $2.5 billion weekly during the market downturn, which Bitwise suggests helped to mitigate the severity of the price decline compared to previous cycles.

This shift in investment strategy among sovereign wealth funds, treating Bitcoin as a viable alternative to traditional reserve assets, marks a notable development in the institutional adoption of cryptocurrency.