Sovereign Wealth Funds Selling Gold for Bitcoin? What Bitwise Found

A Bitwise institutional survey has put renewed attention on the idea of selling gold for Bitcoin, after one sovereign wealth fund reportedly told the firm that it funded its crypto allocation by selling foreign exchange and gold reserves. 

The disclosure came as Bitwise found that none of the 15 major institutions it interviewed reduced their crypto allocation during Bitcoin's roughly 50% drawdown from about $125,000 to $60,000. Several bought more instead.

The finding does not mean sovereign wealth funds broadly are abandoning gold for Bitcoin. Bitwise's research indicates that some institutions increasingly view Bitcoin alongside gold as a hedge against currency debasement, while the specific claim about a sovereign fund selling gold comes from comments by Bitwise Head of Research Ryan Rasmussen. The fund was not publicly identified.

Key Takeaways

• Bitwise interviewed 15 major institutions and found none reduced its crypto allocation during a roughly 50% Bitcoin drawdown, while several increased their holdings.
• Institutions surveyed by Bitwise frequently viewed Bitcoin alongside gold as a hedge against fiat currency debasement.
• One sovereign wealth fund reportedly told Bitwise that it funded its crypto allocation by selling foreign exchange and gold reserves, although the fund was not identified.

What Did the Bitwise Institutional Survey Find?

Bitwise's first institutional crypto adoption report examined how large investors approach digital assets, including their allocation sizes, investment motivations and behaviour during market declines.

The research was based on interviews with senior investment professionals from 15 major institutions. 

The group included sovereign wealth funds, public pension funds, endowments, foundations, multi-family offices, investment consultants and public companies.

One of the clearest findings concerned institutional behaviour during Bitcoin's major drawdown.

Bitwise said the crypto market fell roughly 50% between the fourth quarter of 2025 and the second quarter of 2026. 

None of the 15 institutions interviewed reduced its crypto allocation during that period, while several increased their exposure.

That does not mean all institutional investors behaved in the same way. The sample was limited to 15 institutions and should not be treated as a complete representation of global institutional investment.

Are Sovereign Wealth Funds Selling Gold for Bitcoin?

The most notable detail came from Ryan Rasmussen, Bitwise's head of research, when discussing the institutional findings.

Rasmussen said one sovereign wealth fund told Bitwise that it was funding its crypto allocation by selling foreign exchange and gold reserves.

The institution was not publicly identified. There was also no disclosed information about how much gold was sold, how large the resulting Bitcoin allocation was, or whether the strategy represents a broader policy among sovereign wealth funds.

The claim should therefore be treated as an anonymised institutional disclosure, rather than evidence that sovereign wealth funds as a group are selling gold for Bitcoin.

The wider survey does, however, show that sovereign wealth funds are among the types of institutions considering crypto allocations.

Why Are Institutions Holding Bitcoin Alongside Gold?

The Bitwise survey points to an investment thesis in which Bitcoin and gold can occupy similar portfolio roles without necessarily being direct substitutes.

Every institution in the survey that owned crypto also owned Bitcoin. Bitwise also found that institutions frequently discussed Bitcoin alongside gold when considering protection against fiat currency debasement.

Gold has traditionally been used by investors and reserve managers as a scarce asset that does not depend on the financial condition of a particular issuer.

Bitcoin has a different structure. Its supply is governed by its protocol, while ownership and transfers take place through a digital network.

These differences mean Bitcoin and gold carry different risks and market characteristics. However, some institutions appear to view both assets as potential ways to diversify exposure to monetary and currency risks.

That makes the reported sovereign wealth fund transaction particularly interesting. Rather than simply adding Bitcoin with new capital, the institution reportedly funded the allocation by reallocating part of its existing reserves.

Bitcoin vs Gold: What Is the Institutional Argument?

The Bitcoin vs gold debate often centres on whether the two assets compete with each other or can serve complementary roles.

The Bitwise research suggests that at least some institutional investors increasingly see them as complementary.

The report found that Bitcoin was commonly held alongside gold as part of a strategy to hedge against fiat currency debasement. This does not mean institutions necessarily view Bitcoin as a replacement for gold.

An institution can maintain gold exposure while adding Bitcoin to its portfolio.

The distinction is particularly relevant for large investors. Bitwise reported crypto allocations ranging from 0.5% to 13% of investable assets, with most institutions falling between 1% and 2%.

A relatively small Bitcoin allocation can therefore coexist with much larger positions in traditional reserve assets.

Did Institutions Sell Bitcoin During the Drawdown?

Another significant finding was that none of the surveyed institutions cited price declines as a reason for reducing their crypto allocation.

Bitwise reported that none of the 15 institutions sold its crypto holdings during the major drawdown covered by the research. Several instead increased their positions.

The institutions also identified different circumstances that could cause them to sell.

These included a failure of their investment thesis, a major regulatory reversal or a broader loss of credibility across the crypto industry.

This suggests that at least among the institutions interviewed, Bitcoin exposure was being evaluated as a longer-term portfolio allocation rather than purely as a short-term trading position.

What Happened to Bitcoin Between $125,000 and $60,000?

The survey discussion highlighted a Bitcoin decline from roughly $125,000 to $60,000.

According to Rasmussen, none of the institutions interviewed by Bitwise sold during that decline, while several bought more.

Rasmussen also said he believes $60,000 was the bottom of the cycle.

That statement is his market view rather than a confirmed future price level. Bitcoin can remain volatile, and a previous low does not guarantee that the market will not revisit or move below it.

The more significant finding from the survey is the reported behaviour of institutional investors during the drawdown rather than any specific Bitcoin price target.

What Does This Mean for Institutional Crypto Allocation?

The survey suggests that institutional crypto allocation is becoming more strategic and less dependent on short-term price movements.

Bitwise reported that most surveyed institutions had crypto allocations between 1% and 2% of investable assets, although the reported range extended from 0.5% to 13%.

The research also found that institutional investors were increasingly using regulated investment structures to gain Bitcoin exposure, citing factors such as lower operational complexity and easier administration.

This is relevant to the gold discussion because institutional adoption does not necessarily require investors to replace traditional assets with Bitcoin.

A pension fund, sovereign wealth fund or family office can hold gold, equities, bonds and other assets while allocating a relatively small portion of its portfolio to Bitcoin.

The reported sovereign wealth fund example represents a more specific development: reallocating existing reserve assets towards crypto.

Why Would an Institution Sell Gold for Bitcoin?

The potential rationale is linked to how an institution defines its long-term portfolio objectives.

If an investor views both gold and Bitcoin as potential hedges against currency debasement, it may decide that maintaining exposure to both provides greater diversification than holding only one.

A decision to reduce gold exposure could also reflect a change in the institution's preferred risk profile, liquidity requirements or expectations about the future role of digital assets.

However, none of these explanations can be confirmed as the specific motivation of the unnamed sovereign wealth fund.

The available information only establishes that the institution reportedly told Bitwise it funded its crypto allocation by selling foreign exchange and gold reserves.

What Should Investors Watch Next?

The most important question is whether the reported institutional behaviour becomes more widespread.

Reserve reallocation is one development to watch. If additional sovereign or public institutions disclose moving part of their gold or foreign exchange reserves into Bitcoin, it would provide more evidence of a broader shift rather than an isolated example.

Allocation size is another important measure. Most institutional crypto allocations reported by Bitwise remained relatively small. A sustained increase in allocation sizes could indicate a deeper integration of Bitcoin into institutional portfolio construction.

Behaviour during future drawdowns also matters. The Bitwise survey provides a snapshot of institutional behaviour during one major decline. Future market stress could show whether institutions continue to hold or increase exposure when prices fall sharply.

For retail investors, the evidence does not establish that selling gold for Bitcoin is the right strategy. 

Instead, it shows that some large investors are considering Bitcoin as a portfolio asset that can coexist with gold, while at least one sovereign wealth fund reportedly used gold and foreign exchange reserves to fund its crypto allocation.

Conclusion

Bitwise's first institutional crypto survey provides evidence that Bitcoin is becoming more established within large investment portfolios.

All surveyed institutions that owned crypto also owned Bitcoin, while the research found that Bitcoin was frequently considered alongside gold as a potential hedge against fiat currency debasement.

The most notable disclosure was that one sovereign wealth fund reportedly funded its crypto allocation by selling gold and foreign exchange reserves. 

However, the institution was not identified, and the finding should not be interpreted as evidence that sovereign wealth funds broadly are replacing gold with Bitcoin.

The wider survey provides a clearer signal about institutional behaviour. None of the 15 institutions interviewed by Bitwise reduced its crypto allocation during the reported roughly 50% drawdown, while several increased their exposure.

The development to watch is whether similar reserve reallocations and long-term Bitcoin allocations emerge among more institutional investors.

FAQ

Are sovereign wealth funds selling gold to buy Bitcoin?

One sovereign wealth fund reportedly told Bitwise that it funded its crypto allocation by selling foreign exchange and gold reserves. The fund was not publicly identified, so the finding should not be generalised to sovereign wealth funds as a group.

What did Bitwise's institutional survey find?

Bitwise interviewed investment professionals from 15 major institutions and found that none reduced its crypto allocation during the roughly 50% drawdown covered by the study. Several increased their holdings.

Do institutions see Bitcoin as similar to gold?

The Bitwise research found that institutions frequently hold Bitcoin alongside gold and view Bitcoin as part of a potential hedge against fiat currency debasement. The two assets still have different characteristics and risks.

How much Bitcoin are institutions allocating?

Bitwise reported crypto allocations ranging from 0.5% to 13% of investable assets, with most surveyed institutions allocating between 1% and 2%.

Did Ryan Rasmussen say Bitcoin had bottomed at $60,000?

Yes. Rasmussen said he believes $60,000 was the bottom of the cycle. That is his stated market view, not a confirmed future Bitcoin price level.

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