Bitcoin ETF Holdings Drop 23% in Q1 2025, CoinShares Reports
Institutional interest in Bitcoin ETFs has recorded its first quarterly decline since U.S. spot ETFs launched, according to a Q1 2025 report by CoinShares. Holdings managed by institutions fell from $27.4 billion in Q4 2024 to $21.2 billion, reflecting a 23% drop over the period.
Key Stats:
Q1 2025 Holdings: $21.2 billion
Q4 2024 Holdings: $27.4 billion
Quarterly Change: -23%
BTC Price Drop: -11% QoQ
Price Decline — Not Panic Selling — Drove Exposure Down
According to CoinShares, the major driver behind the drop in ETF exposure was the 11% decline in Bitcoin’s price, not broad institutional sell-offs.
“Valuation was the primary factor, though some trimming of positions did occur,” the report noted.
Notably, financial advisers bucked the trend, slightly increasing their Bitcoin ETF allocations during the quarter.
Corporate Treasuries Pick Up the Slack
While ETF flows were mixed, corporate Bitcoin adoption surged:
Bitcoin held by treasury companies: Over 1.98 million BTC by end of Q1 — an 18.6% increase YTD.
Strategy (formerly MicroStrategy) acquired 15,355 BTC on April 28 alone.
Strategy has accumulated Bitcoin in 17 of the last 20 weeks, based on data from SaylorTracker.
This shift suggests that corporations are leaning into Bitcoin as a long-term treasury asset, diverging from short-term ETF-driven speculation.
BlackRock’s IBIT Sees Record Outflows
The iShares Bitcoin Trust (IBIT) from BlackRock witnessed its largest single-day outflow on May 30, with $430 million withdrawn — ending a 31-day inflow streak.
ETF Flows Remain Volatile Amid Macroeconomic Shifts
The broader ETF landscape in early 2025 has been shaped by macro uncertainty. Investor sentiment shifted from risk-on assets like Bitcoin to perceived safer havens, such as U.S. government bonds.
But with bond yields rising, cracks may be forming in that narrative. Analysts suggest that Bitcoin’s long-term upside could be fueled by weakening U.S. bond markets, rather than ETF-driven demand alone.
Q1 2025 marked a turning point for institutional Bitcoin investment. While ETF holdings declined, it wasn't due to widespread fear or mass exits — but rather a combination of price depreciation and portfolio rebalancing. Meanwhile, corporate accumulation of BTC hints at a longer-term conviction in Bitcoin as a treasury reserve asset, according to Cointelegraph.
