The Q1 2025 batch of 13-F filings shows something we haven’t seen since the U.S. spot bitcoin ETFs launched in January 2024: a decline in reported institutional holdings.
These quarterly disclosures, which are mandatory for firms managing over $100 million, reveal that professional investors held $21.2 billion in U.S. bitcoin ETFs at the end of Q1 2025. Perhaps surprisingly, that’s a 23% decline from $27.4 billion in Q4 2024.
This pullback stands out because it’s sharper than the 12% overall decline in the broader U.S. bitcoin ETF market. Bitcoin ETF issuers ended the quarter with $92.3 billion in total assets under management, versus $104.1 billion in Q4 2024. On the surface, the numbers might seem like a warning sign, but a closer look tells a more nuanced story.
Bitcoin’s price fell 11% during the quarter. This accounts for a meaningful portion of the decrease in asset values; nearly half of the decrease in holdings was the result of bitcoin depreciating rather than investors simply exiting their positions en masse.
But hedge funds divesting themselves of bitcoin ETF exposure was the largest driver of the change, at least when we evaluate which institutional cohorts had the largest net change in their holdings. They trimmed their exposure by nearly one-third. Hedge funds are notoriously tactical with their positions and manage swaths of capital on a shorter time horizon, so they very likely decreased their positions as the basis trade unwound when bitcoin futures lost their premium.
Meanwhile, investment advisors, who manage longer-term client portfolios, notably increased their holdings in bitcoin terms. Advisors now represent 50% of all 13-F filer assets, up from 42% the prior quarter. They also make up 81% of the total number of professional filers, something not necessarily surprising – but still promising.
Some high-profile institutions also increased their allocations despite the broader decline. BlackRock, Goldman Sachs, and Macquarie added a combined $559 million to their bitcoin ETF positions. Brown University added a position to their endowment, and the headline from the previous 13F filings — the UAE’s Mubadala sovereign wealth fund — increased their position size to $411 million. On the other end, the Wisconsin State pension fully unwound their position, as did Bracebridge Capital advisory.
In total, three ETFs account for more than 85% of professional holdings: BlackRock’s IBIT, Fidelity’s FBTC, and Grayscale’s GBTC. These products remain the top choices for institutions entering the space.
Although holdings are down overall, bitcoin’s rising adoption story doesn’t seem derailed. Corporations, in particular, have vocally increased their BTC holdings 20+ percent this year. And with only a year and a half of trading history for spot ETFs, as well as professional portfolio allocations still averaging under 1% for bitcoin exposure, there is plenty of room to grow.
What we’re seeing in the filings are less a reversal and more a healthy repositioning in a maturing market. The long-term direction of institutional bitcoin exposure still points upward.
