Institutional Bitcoin Fund Holdings Decline for the First Time Since the Launch of Spot ETFs

Bitcoin exchange-traded funds (ETFs) managed by institutional entities experienced a decline in early 2025, marking the first quarterly drop since the launch of US spot ETFs.

According to a recent report from CoinShares, institutional investors' exposure to Bitcoin (BTC) fell to $21.2 billion in the first quarter of 2025, compared to $27.4 billion in the last quarter of 2024, representing a 23% decline during the period.

The company attributed this decrease mainly to an 11% drop in Bitcoin prices on a quarterly basis, rather than an actual reduction in the size of investment positions, although many investors opted to reduce their holdings, indicating a mix of valuation effects and active selling.