I am too much curious and confused to understand how they will manage to sell all of their btc if some day a big dump arrives, or if their investors start to take out their investments and ask them to sell the btc and pay them. For an institution to pull out their btc from their wallets and sell, there needs to be an institution or a very big whale on the other hand to buy all that and they will also need that much big liquidity for the same.
If a really big dump happens, many HODLers will be in trouble.
If a bear market starts, then even 5 days of delay is no biggy, these institutional investors will be still on great profit. And they surely have some smart analysts on their payroll which can tell clearly it's bear market or just another dip.
Then, I expect that at least some of these institutional investors have no intention to sell even if bear market starts. They are not traders/speculators and in 2-4 years the bull market will get them on even greater profit.
Now, a very common logic, which institution would like to buy btc at $100k or even at million dollars when the seller institution is already taking out big profits in fiat by selling their btc to the buyer Institution? Won't that btc be coming with an impermanent loss if the price dumps later? Do you think there is any point where a stagnancy of liquidity or financial crunch may affect the price of btc so badly that it can reverse down like it did in the 2018 crash?
Again, I think that they have analysts that can tell how big is the chance the bull run continues after 100k and advise them to buy or not. Or to sell.
If the institutional investors keep buying, the current bull run will be longer and the bear market will no longer be as bad as the previous ones. It's just a feeling though, but others have already said that this bull market is going to be different.