Professional investors dumped 52K BTC worth of ETFs in Q1, filings show

Summary

Professional ownership of US spot Bitcoin ETFs fell sharply in Q1 as Bitcoin’s drawdown deepened, pointing to trading-oriented institutions as a major source of selling. CoinShares’ analysis of 13F filings showed professional investors cut ETF exposure to 261,000 BTC from 313,000 BTC, a 17% drop, while holdings’ value fell 35% to $17.8 billion. Their share of total US Bitcoin ETF assets slipped to 20.8% from 24.7%. Most of the reduction came from hedge funds and brokerages, which drove about 96% of the selling. Hedge funds cut exposure 39%, and brokerages reduced holdings 53%. Investment advisors trimmed only slightly, while banks more than doubled their Bitcoin ETF positions. The decline came alongside a 22% Q1 drop in Bitcoin’s price, with deeper losses from its October high. Even so, CoinShares pointed to improving regulation, including clearer SEC-CFTC roles, possible retirement-account changes, and the ongoing CLARITY Act, which could strengthen long-term adoption.