Points of Focus

• Professional investors cut US spot Bitcoin ETF exposure by 17% during the first quarter, reducing holdings from 313,000 BTC to 261,000 BTC.
• Hedge funds and brokerages accounted for roughly 95% of the decline, according to CoinShares’ analysis of SEC Form 13F filings.
• Investment advisers remained the largest professional holder group, while banks increased exposure despite Bitcoin’s sharp correction.

Professional investors cut their exposure to US spot Bitcoin (BTC) exchange-traded funds (ETFs) during the first quarter of 2026, with new regulatory filings showing that hedge funds and brokerages accounted for most of the selling as Bitcoin entered its deepest ETF-era drawdown.

According to a CoinShares analysis of Form 13F filings submitted to the US Securities and Exchange Commission, professional holdings in spot Bitcoin ETFs fell to 261,000 BTC from 313,000 BTC during the quarter. The value of those positions dropped 35% to $17.8 billion as Bitcoin declined 22% and briefly traded below $60,000.

Hedge funds and brokerages drove most Bitcoin ETF selling

The filings show most of the selling came from hedge funds and brokerages, two investor groups that often trade around market conditions rather than maintain strategic allocations.

Hedge funds reduced their ETF exposure by 31,400 BTC, a 39% quarterly decline. Brokerage firms cut another 18,800 BTC, representing a 53% drop in holdings. Combined, those two groups accounted for roughly 95% of the reduction in professional ownership.

CoinShares analyst Matt Kimmell said the pattern resembles previous Bitcoin market drawdowns, where leveraged and trading-focused positions tend to unwind as prices fall.

Professional @Bitcoin ownership faced its first real ETF-era bear market test.

As our latest report by Matthew Kimmel (@bc1matt) shows, 13F holdings fell 17% in Q1, but the selling was highly concentrated.

Hedge funds and brokerages drove most of the reduction, while advisors… pic.twitter.com/4jr50bmDJh

— CoinShares (@CoinSharesCo) June 4, 2026

The scale of the reduction also lowered the share of US Bitcoin ETF assets held by professional managers. Holdings reported through 13F filings fell to 20.8% of total ETF assets from 24.7% in the previous quarter.

Long-term allocators held steadier positions

The filings show a clear split between trading-oriented investors and longer-term allocators.

Investment advisers, which remain the largest professional holder category, reduced exposure by only 5.9%. The group still controlled about 150,300 BTC, representing roughly 58% of all Bitcoin ETF holdings reported through 13F filings.

Banks moved in the opposite direction. Their Bitcoin ETF exposure more than doubled during the quarter to approximately 15,200 BTC. CoinShares highlighted additions from JPMorgan and Wells Fargo, while Citigroup appeared in the filings for the first time.

The contrast reflects a sharp difference in positioning between hedge funds and brokerages, which reduced exposure, and advisers and banks, which largely maintained or increased holdings.

Bitcoin ownership trends remain divided

The first quarter marked the first major bear market test for professional Bitcoin ETF investors since spot funds launched in the United States.

While the filings indicate that some professional investors reduced risk during the downturn, they also show continued participation from advisers, banks, sovereign investors, and other longer-horizon holders. 

The next round of 13F filings is scheduled for August 2026 and will show how professional investors responded to the rebound in ETF flows after March.