A June 5 CoinShares report showed that institutional investors cut their Bitcoin (BTC) allocations in US – based spot exchange – traded funds (ETFs) during the first quarter. This came after hedging profits waned and futures premiums compressed.
The report assessed 13 – F filings from asset managers with at least $100 million in assets under management. These investors reported $21.2 billion in Bitcoin ETF exposure as of March 31, down from $27.4 billion registered in the previous year’s fourth quarter, representing a 23% pullback. The reduction outpaced the 12% slide in the overall ETF market’s assets under management and occurred as Bitcoin dropped 11% during the period.
CoinShares attributed most of the reduction to hedge funds, which trimmed holdings by almost 33% after the decreasing appeal of the basis trade, which had captured wide spreads between futures and spot prices throughout 2024. In contrast, financial advisors moved in the opposite direction. Dollar – denominated stakes decreased in value, yet Bitcoin – denominated positions increased, lifting advisors to 50% of all filer assets. Meanwhile, hedge funds slipped to 32%, and brokerages held 10%.
Despite the selling, professional investors still held nearly 23% of Bitcoin ETF assets, a modest decrease from the 26.3% share reported in the prior quarter. CoinShares framed the decline as tactical rather than structural, noting that average portfolio allocations sit below 1%. The firm expects larger institutions to build positions once regulatory guidance stabilizes, internal committees approve crypto mandates, and education gaps close.
Filer focus remained on three products: BlackRock’s iShares Bitcoin Trust (IBIT) carried $12.7 billion from professional investors, or almost 33% of the ETF’s assets. Fidelity’s FBTC followed with $3.6 billion, while Grayscale’s converted GBTC held $2.2 billion. Together, the trio accounts for 85% of institutional ownership.
The report also noted that corporate treasuries increased their Bitcoin reserves by 18.7% year – to – date, reaching 1.98 million coins in mid – May, in contrast to the institutional retrenchment. Professional asset managers opted to lock in gains earned since the launch of ETFs in January 2024, following Bitcoin’s crossing of the $100,000 mark in February.
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