Institutional investor holdings through U.S. spot bitcoin exchange-traded funds (ETFs) fell sharply in the first quarter of 2026.

CoinPost, a blockchain media outlet, reported on Thursday that institutional holdings fell 17% to 261,000 BTC from 313,000 BTC in the previous quarter, based on CoinShares' first-quarter 2026 analysis of 13F filings.

Assets under management totalled $17.8 billion. That was down 35% from the previous quarter. The share of institutional holdings in total ETF assets under management fell to 20.8% from 24.7%. It was the second-largest quarterly decline since the launch of spot ETFs.

The decline coincided with a correction in bitcoin prices. Bitcoin fell 22% during the quarter and ended it trading at about $68,000. Compared with the above $126,000 all-time high recorded in October 2025, the decline was about 50%. CoinShares defined the move as "the first full-fledged correction phase of the ETF era". It also viewed institutional responses as similar to behavioural patterns seen in past price cycles.

Hedge funds and broker-dealers led the selling. About 95% of the total decline in holdings was concentrated in those two segments. Hedge funds cut positions by 39% from the previous quarter, reducing holdings by 31,000 BTC. The shift of perpetual futures funding rates into negative territory at the end of the quarter weighed on basis-trade profitability. CoinShares also cited moves of funds into other asset classes such as AI and precious metals as a backdrop.

Broker-dealer holdings fell 53%. The full sale of 8,300 BTC held by Morgan Stanley was cited as a key factor. Investment advisers, by contrast, trimmed holdings by 5.9% to 150,300 BTC. That was up 20% from a year earlier, and they remained the largest segment, accounting for about 58% of all 13F filers. CoinShares assessed this as evidence of "structural long-term holding".

A notable change came from banks. The banking segment was a net buyer of 7,800 BTC, raising total holdings to 15,200 BTC. The year-on-year increase was 339%. JP Morgan Chase added 3,000 BTC and Wells Fargo bought an additional 4,000 BTC. Italy's Intesa Sanpaolo added a new position worth 1,600 BTC.

Government-related funds also entered alongside banks. Citigroup filed a 13F for the first time and disclosed holdings worth 97 BTC. Abu Dhabi's Mubadala Investment Co bought an additional 1,100 BTC. As a result, total holdings in the national and government-related segment rose to 8,300 BTC.

The trend shows that different types of money within institutions moved in opposite directions. During the correction, hedge funds and broker-dealers cut exposure quickly, while banks and some long-term funds increased holdings. As a result, future supply and demand for spot bitcoin ETFs is expected to be driven less by the total amount of institutional money than by what kinds of money remain and enter.