According to a Coinshares report on June 5, institutional investors reduced their Bitcoin (BTC) allocation to US-based spot exchange trade funds (ETFs) in the first quarter after hedging profits waned and futures premiums were reduced.
The report evaluated 13-F applications from asset managers who manage at least $100 million in assets. These investors reported a Bitcoin ETF exposure of $21.2 billion as of March 31, starting from $27.4 billion registered in the fourth quarter last year.
ETF Exposure Pullback
The 23% pullback outweighed the 12% slide under the control of the entire ETF market, resulting from a 11% decline in Bitcoin over the period.
Coinshare has tied most things together Reducing hedge funds. These companies trimmed their holdings of nearly 33% after a decline in base trade appeals that gained a wide spread between futures and spot prices throughout 2024.
The advisor moved in the opposite direction. The value of the dollar-controlled interests fell, but the Bitcoin controlled position increased, lifting the advisor to 50% of all filer assets.
Meanwhile, hedge funds slipped to 32%, while brokerages held at 10%. Advisors also controlled personnel, accounting for 81% of the 755 managers who disclosed Bitcoin ETFs.
Despite sales, professional investors still led nearly 23% of Bitcoin ETF assets. This is a slight decline from the 26.3% shares reported in the last quarter.
Coinshare framed the decline as tactical rather than structure, noting that the average portfolio allocation was below 1%. The company hopes that regulatory guidance will stabilize, internal committees approve crypto mandates, and large institutions will build positions as education gaps approach.
ETF concentration remains high
Filer focused on three products: BlackRock’s Ishares Bitcoin Trust (IBIT) has won $12.7 billion from nearly 33% of the assets of its professional investors, namely ETFs. Fidelity’s FBTC continued at $3.6 billion, while Grayscale’s converted GBTC held $2.2 billion. Together, the trio accounts for 85% of the institution’s ownership.
Quarterly flows reflected that hierarchy. BlackRock attracted fresh capitals from Goldman Sachs and Macquarie. This opened or expanded positions worth $206 million and $136 million, respectively.
Hedge fund heavyweight Millennium Management overturned the course, cutting $980 million, while Bridgewater Style adviser BraceBridge Capital settled $335 million.
The Wisconsin state pension fund sold its entire $323 million shares, while the Abu Dhabi Mubadara Sovereign Fund Increased its holdings to $411 million.
The institutional cuts were in contrast to the accumulation of the Ministry of Corporate Finance. Coinshares estimated that the company’s Treasury had increased its Bitcoin reserves by 18.7% since the start of the year, reaching 1.98 million coins in mid-May.
The report noted that companies emulated their strategy’s balance sheet strategy. At the same time, the professional asset manager chose to lock in the profits it had acquired since the launch of the ETF in January 2024 after Bitcoin crossed the $100,000 mark in February.