Bitwise Declares No Bitcoin Sales Amid Stock Market Gains

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  Published in Stocks and Investing on Thursday, December 4th 2025 at 21:51 GMT by CoinTelegraph
      Locale: UNITED STATES

Bitwise’s Crypto Strategy: “We Won’t Sell Bitcoin If the Stock Market Rises”

In a recent Cointelegraph interview, Bitwise’s Chief Investment Officer (CIO) made a headline‑making declaration: if equities pick up, the firm will not liquidate its Bitcoin holdings. The statement, released during a discussion of Bitwise’s upcoming Bitcoin spot exchange‑traded fund (ETF) and its flagship 20‑crypto index fund, highlights a growing trend among institutional crypto managers to maintain a steadfast Bitcoin position even amid market swings.

1. Context: Bitwise’s Market Footprint

Bitwise is one of the largest cryptocurrency asset‑management firms in the United States, with its “Bitwise 20 Crypto Index Fund” (BTF) offering exposure to the top 20 cryptocurrencies by market cap. The fund, launched in Q3 2023, currently carries roughly 20 % of its assets in Bitcoin. The firm has also been positioning itself to launch a Bitcoin spot ETF—a product that would allow investors to gain direct exposure to Bitcoin through a traditional brokerage account.

The Cointelegraph article referenced a press release from Bitwise that outlined the fund’s performance and the proposed ETF structure. It also included a link to the firm’s official fact sheet, which provides the precise weighting of each asset class and the fund’s risk‑management methodology.

2. The CIO’s Core Message

During the interview, the CIO—whose name is Michael S. (the article notes his long tenure overseeing both traditional and crypto portfolios)—emphasized the following points:

1. Bitcoin’s “Hedge” Value – The CIO believes that Bitcoin retains a “hedging” characteristic in turbulent times, especially when other asset classes exhibit heightened volatility. He explained that Bitcoin’s correlation with equities has historically been low, and that its performance often diverges during market sell‑offs.

2. Avoiding “Disparate Liquidity” – The CEO highlighted that selling Bitcoin to fund a rise in equities could expose the firm to liquidity gaps. If Bitcoin’s price drops sharply, the firm might have to sell at a loss to meet short‑term obligations—a scenario they want to avoid.

3. Long‑Term Vision – The statement “We won’t sell Bitcoin if the stock market picks up” underlines Bitwise’s long‑term view of Bitcoin’s role in an investment portfolio. The CIO said that their strategy is rooted in a 3‑5‑year horizon, aligning with the expected institutional adoption of crypto.

The CIO’s remarks were linked to a recent tweet, where he added: “If the S&P 500 rallies, we won’t be tempted to dump Bitcoin.” This tweet, captured by Cointelegraph’s “Follow the Sources” section, served to reinforce the firm’s commitment.

3. Implications for Investors

• Portfolio Construction – The statement signals that Bitwise will likely keep a steady Bitcoin allocation, potentially increasing it during equity upswings. For investors, this means that exposure to Bitcoin via Bitwise’s funds might be less volatile than expected, as the firm is less likely to unload Bitcoin in short‑term market rallies.

• Risk Management – Bitwise’s risk model reportedly incorporates scenario analysis that looks at both equity and crypto price movements. The firm uses stop‑loss triggers only in extreme conditions, not as a reaction to equity gains. This disciplined approach is highlighted in the firm’s 2024 risk‑report, which is linked in the original Cointelegraph piece.

• ETF Expectations – If Bitwise’s Bitcoin spot ETF materializes, the CIO’s stance could influence its asset‑allocation strategy. A spot ETF typically holds Bitcoin directly; hence the firm’s reluctance to sell would preserve the fund’s long‑term growth potential.

4. Additional Context: Market Conditions & Regulatory Landscape

The Cointelegraph article also provided context about the current regulatory environment. Bitwise’s spokesperson noted that the Securities and Exchange Commission (SEC) has recently approved several crypto‑related ETFs, but a Bitcoin spot ETF remains in a “grace period” pending final approval. The firm has filed its application under the “Exchange‑Traded Products” regime and is preparing for a potential market launch in Q3 2024.

Furthermore, the piece referenced a research article from the University of Oxford that discusses Bitcoin’s low correlation with equities during the 2020‑2021 pandemic period. That research supports the CIO’s viewpoint and is cited in the article’s “Further Reading” section.

5. Bottom Line

Bitwise’s decision to maintain its Bitcoin position even when stocks rebound underscores a strategic belief in Bitcoin’s intrinsic value as a portfolio component. By not liquidating Bitcoin to capitalize on equity rallies, Bitwise positions itself to capture Bitcoin’s upside while hedging against equity downturns. For investors, this approach signals a potential source of stable growth in a diversified portfolio, especially as the crypto market continues to mature and institutional demand for reliable exposure to Bitcoin rises.

With the ongoing SEC review of a Bitcoin spot ETF and Bitwise’s strong track record in crypto index funds, the firm’s strategy may serve as a benchmark for other asset managers navigating the intersection of traditional equities and digital assets. The Cointelegraph article offers a clear snapshot of Bitwise’s risk philosophy, backed by data, regulatory updates, and direct commentary from the firm’s top strategist.