BlockBeats report: On February 18, the crypto research firm 10x Research noted that, despite Bitcoin’s price falling 46% from its peak, Bitcoin ETFs recorded only $8.5 billion in net outflows—a relatively modest reduction relative to the total assets under management. The structural characteristics of ETF ownership reveal that market makers and arbitrage-focused hedge funds dominate, holding positions that are largely hedged or market-neutral rather than directional bets on Bitcoin. Additionally, long-term institutional investors hold a significant portion of the positions, characterized by low turnover and longer investment horizons.
Based on the latest 13F filings for the fourth quarter of 2025, an estimated 55–75% of BlackRock’s IBIT’s $61 billion in assets remains held by market makers and arbitrage-focused hedge funds. During the fourth quarter of 2025, as Bitcoin prices consolidated around $88,000, market makers reduced their exposure by approximately $1.6–2.4 billion, reflecting declining speculative demand and reduced arbitrage activity.