Bitcoin ETF Ownership Shifts as Hedge Funds Sell and Banks Buy: CoinShares
CoinShares says professional investors cut Bitcoin ETF holdings by 52,000 BTC in Q1 as hedge funds and brokerages sold into the downturn.
Intelligence analysis by GPT-5.4 Mini
CoinShares’ review of 13F filings shows US spot Bitcoin ETF ownership shifted in Q1: tactical investors reduced exposure sharply while banks increased holdings. The report ties the selling to Bitcoin’s drawdown, but notes the regulatory backdrop and institutional acceptance may still support longer-term demand.
Some grown-up investors took money out of Bitcoin funds when prices fell, like jumping off a bike during a steep downhill. But banks kept adding some money, which shows not everyone was running away.
Analysis
CoinShares analyzed quarterly 13F filings from investment managers with at least $100 million in assets and found a sharp drop in professional ownership of US spot Bitcoin ETFs during Q1. Holdings fell from 313,000 BTC to 261,000 BTC, a 17% decline, while the dollar value of those holdings dropped 35% to $17.8 billion. The share of total US Bitcoin ETF assets held by 13F filers also slipped to 20.8% from 24.7%.
The selling was concentrated in shorter-term, more active allocators. Hedge funds reduced exposure by 31,400 BTC, or 39%, and brokerages cut 18,800 BTC, or 53%. CoinShares said this pattern fits historical Bitcoin drawdowns, where leveraged and tactical strategies tend to unwind. By contrast, investment advisors, which held the largest professional position at 150,300 BTC, cut exposure only modestly.
Banks were the clearest buyers in the quarter, more than doubling their Bitcoin ETF holdings by adding 7,800 BTC. That contrasts with the broader market backdrop: Bitcoin fell 22% in Q1, briefly slipped below $60,000, and at one point was down roughly 50% from its October 2025 high above $126,000.
The report also points to a friendlier regulatory environment. CoinShares highlighted efforts to clarify SEC and CFTC oversight, plus proposals affecting how digital assets could be treated in retirement accounts. It also noted that the SEC has made digital assets a strategic priority through 2030. The CLARITY Act remains a key watch item, though the banking industry has raised concerns. The overall picture is one of near-term de-risking by fast-money holders alongside continued institutional participation and improving policy visibility.
Key points
- Professional investors reduced Bitcoin ETF exposure to 261,000 BTC in Q1 from 313,000 BTC.
- Hedge funds and brokerages drove most of the selling, while banks increased holdings by 7,800 BTC.
- The value of professional Bitcoin ETF holdings fell 35% to $17.8 billion as Bitcoin dropped 22% in Q1.
- CoinShares says the pattern matches past Bitcoin drawdowns, when leveraged and tactical strategies unwind.
- The article also cites improving regulatory clarity and continued institutional acceptance as potential supports.
If the regulatory backdrop keeps improving, the article suggests more traditional institutions could stay involved or increase exposure. Banks adding holdings while investment advisors mostly held steady points to continuing long-term interest even during price weakness.
The biggest buyers were not enough to offset heavy selling from hedge funds and brokerages, which suggests Bitcoin can still be treated as a risky trade during downturns. If price weakness continues, tactical investors may keep unwinding positions, leaving ETF flows under pressure.
