Brevan Howard, one of the world’s most closely watched macro hedge funds, has dramatically scaled back its direct exposure to Bitcoin. The firm sold roughly 70% of its position in BlackRock’s iShares Bitcoin Trust, leaving it with approximately $255 million worth of the ETF.
For context on how far this pendulum has swung: at its peak in Q2 2025, Brevan Howard held close to 37.9 million IBIT shares, a position worth somewhere between $2.3 billion and $2.6 billion. That made the firm one of the largest reported institutional holders of the ETF anywhere on the planet.
From all-in to options-first
The retreat did not happen all at once. The bulk of the reduction came in Q4 2025, when Brevan Howard sold approximately 31.2 million shares, an 86% cut that brought its spot holdings down to roughly 5.5 million shares worth around $275 million.
Rather than walking away from Bitcoin entirely, Brevan Howard replaced much of its spot exposure with a layered options position, acquiring call options tied to nearly 8 million IBIT shares, carrying a notional value exceeding $400 million, alongside put options on approximately 5 million shares worth over $248 million in notional exposure.
By mid-August 2026, Brevan Howard’s direct IBIT stake had settled at roughly 7.2 million shares, valued at approximately $240 million to $255 million.
A rough year for crypto at Brevan Howard
The timing of the Q4 pullback coincided with a broader downturn in Bitcoin prices, and the numbers on the firm’s crypto-specific book reflect the pain. Brevan Howard’s dedicated crypto strategy posted a loss of 30% for the full year of 2025.
Brevan Howard’s Q2 2025 decision to nearly double its IBIT stake before the subsequent selloff adds an uncomfortable wrinkle to the story. The firm was aggressively building its position right before the market turned.
What the shift signals for institutional Bitcoin investing
When IBIT launched in early 2024, the initial narrative was simple: spot ETFs would make it easy for institutions to get direct Bitcoin exposure without the operational headaches of self-custody. Brevan Howard’s restructuring suggests that at least some institutional holders are now sophisticated enough with Bitcoin to want a derivatives toolkit, trading the cleanliness of a simple long position for the flexibility of a derivatives overlay.
On one hand, a large direct holder converting spot shares to options reduces immediate buy pressure on IBIT itself. On the other hand, options markets generate their own demand dynamics: dealers who sell call options to clients like Brevan Howard typically hedge by buying the underlying asset, which creates indirect spot demand.