Key Insights
- Institutional Bitcoin ETF holdings fell 17% quarter-over-quarter to 261,000 BTC.
- Hedge funds, brokerages, and advisors accounted for most of the reduction.
- Banks and sovereign investors increased exposure despite Bitcoin’s weak performance.
Institutional investors reduced their exposure to spot Bitcoin exchange-traded funds (ETFs) during the first quarter of 2026, according to a new report from CoinShares.
The asset manager’s review of 13F filings showed institutional holdings fell from 313,000 BTC in the fourth quarter of 2025 to 261,000 BTC by the end of March, representing a decline of approximately 17%.
The reduction came during a difficult quarter for Bitcoin. The leading cryptocurrency fell 22% during the period and ended March near $68,000 after briefly dropping below $60,000 in February. The volatile price action appears to have influenced institutional sentiment, leading many investors to reduce exposure to spot Bitcoin ETFs.
The decline amounted to roughly 52,500 BTC leaving institutional portfolios during the quarter.
The trend may continue into the second quarter. Spot Bitcoin ETFs have already recorded 13 consecutive trading days of net outflows, erasing much of the inflow momentum seen during April and May.
Bitcoin currently trades near $60,000 after briefly touching $59,000, its lowest level since Oct. 2024. The asset has lost approximately 17% over the past week.
Hedge Funds, Brokerages, and Professional Advisors Responsible For Most of the Selling
According to the report, hedge funds and brokerages accounted for 96% of institutions’ selling in Q1. Hedge funds reduced their Bitcoin ETF exposure by 31,400 BTC, representing a 39% reduction from last quarter.
Professional advisors were another group that sold heavily as they reduced exposure by 9,400 BTC, a mere 5.9% drop from last quarter. This group accounts for 58% of all 13F Bitcoin holdings,
Brokerages also followed suit, with Morgan Stanley and Jane Street behind most of the sales. Their exposure was reduced by 53% after they sold 18,800 BTC. Jane Street sold around 10,800 BTC, which CoinShares analysts believe is mostly tied to its role as a market maker for ETF issuers.
Morgan Stanley also sold all its Bitcoin ETF positions, which are worth 8,300 BTC. This was likely in anticipation of the launch of its own spot Bitcoin ETF, MSBT, which began trading in April
Banks and Sovereigns Added to Bitcoin ETF Exposure in Rough Q1
Meanwhile, Q1 was not a complete fire sale for institutional holders. Banks and governments added 7,800 BTC to their Bitcoin ETF holdings during that period, bringing their total to 15,200 BTC.
Major US banks, particularly Wells Fargo and JPMorgan Chase, led the exposure, with Wells Fargo adding 4,000 BTC and JPMorgan Chase increasing its holdings by 3,000 BTC. Citi also entered for the first time 97 BTC, and Italian bank Intesa Sanpaolo entered with 1,600 BTC.
Abu Dhabi’s Mubadala Fund also added 1,100 BTC, which took its total holdings to 8,300 BTC. It was solely responsible for the increase in sovereign Bitcoin ETF holdings, as Private Equity exposure also grew 24% quarter on quarter.
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