Major institutional investors, including BlackRock, Vanguard, and Fidelity, significantly reduced their holdings in MicroStrategy stock during the third quarter of 2025. This move reflects a major shift in how asset managers approach Bitcoin exposure, as they increasingly favor direct investment through spot exchange-traded funds (ETFs) rather than relying on corporate proxies like MicroStrategy. The reduction represents a substantial decline in institutional paper value held by over $5.4 billion during the quarter, dropping from approximately $36.32 billion at the end of Q2 to just $30.94 billion at the close of September. This trend highlights a clear preference for direct Bitcoin ownership through regulated channels like ETFs.