Bitcoin ETF Holdings Decline, Signaling Shift in Investor Strategy

Institutional investors’ exposure to Bitcoin dipped in the first quarter of 2025, marking the first quarterly decline since US spot ETFs launched. According to a report by CoinShares, institutional holdings decreased to $21.2 billion from $27.4 billion in Q4 2024, representing a 23% drop. Analysts attribute this trend primarily to a 11% quarter-over-quarter decline in Bitcoin’s price, rather than significant reductions in individual positions. However, many investors did reduce their holdings, indicating a mix of valuation concerns and active selling.