So now am I supposed to give my passwords for my encrypted bitcoin wallets, and all my banking access codes? And be happy and relaxed when the police tells me that they will not steal anything?
Of course they can steal your stuff; it happens with physical evidence (fairly routinely, in many areas - do you really think all that sequestered ganja gets destroyed?), so it can happen with digital stuff too. There are laws and rules about this, but no physical impediment afaik.
No, they shouldn't be entitled.