The 23% pullback outpaced the 12% slide in the overall ETF market’s assets under management and came as Bitcoin dropped 11% over the period.
Advisors moved in the opposite direction. Dollar-denominated stakes decreased in value, yet Bitcoin-denominated positions increased, lifting advisors to 50% of all filer assets.
Meanwhile, Hedge funds slipped to 32%, and brokerages held 10%. Advisors also dominated headcount, accounting for 81% of the 755 managers that disclosed Bitcoin ETFs.
Despite selling, professional investors still commanded nearly 23% of Bitcoin ETF assets, a modest decrease from the 26.3% share reported in the prior quarter.
CoinShares framed the decline as tactical rather than structural, noting that average portfolio allocations sit below 1%. The firm expects larger institutions to build positions once regulatory guidance stabilizes, internal committees approve crypto mandates, and education gaps close.
Hedge fund heavyweight Millennium Management reversed course, slashing $980 million, and Bridgewater-style advisor Bracebridge Capital liquidated $335 million.
Institutional retrenchment contrasted with corporate treasury accumulation. CoinShares estimated company treasuries increased Bitcoin reserves by 18.7% year-to-date, reaching 1.98 million coins in mid-May.
The report noted that corporations emulated Strategy’s balance sheet strategy. At the same time, professional asset managers opted to lock in gains earned since the launch of ETFs in January 2024, following Bitcoin’s crossing of the $100,000 mark in February.
