Professional Bitcoin ETF holdings decline 17% in Q1 2026

Professional investors are rapidly dumping their Bitcoin ETF positions. According to an analysis by CoinShares, institutional parties saw their combined Bitcoin holdings shrink from 313,000 BTC to 261,000 BTC in the first quarter of 2026, a decline of 17% compared to the previous quarter. The Bitcoin price currently stands at $61K, a drop of 1.9% in the past 24 hours.

Bitcoin is available at OKX and Bybit.

Hedge funds and brokers pull back

The total reduction amounts to around 52,500 BTC, and the responsibility largely lies with two types of entities. Hedge funds and brokers together account for approximately 95% of the reduction. Hedge funds reduced their positions by as much as 39%, while brokers scaled back their exposure by 53%. These are substantial figures indicating that professional traders and intermediaries are clearly becoming more cautious with Bitcoin ETF positions.

The timing is notable. Earlier this week, it became clear that Bitcoin ETFs saw a record outflow with thirteen consecutive days of losses, and also Strategy sold Bitcoin and put pressure on the market. The CoinShares data confirms that the selling behaviour of professional parties began in Q1 and appears to be structural in nature.

Banks are moving in the opposite direction

While hedge funds and brokers sell, banks are doing something remarkable: they are buying instead. Banks increased their total Bitcoin holdings to 15,200 BTC. JPMorgan and Wells Fargo are both adding exposure, and Citi reveals a Bitcoin position for the first time. That banks are stepping in while others are stepping out is an interesting development pointing to a shift in institutional demand for Bitcoin.

The question is whether this is a temporary correction or the start of a longer cooling-off period. The Bitcoin price is approaching the critical level of $60.000, and short-term holders are reaching the worst capitulation point of 2026. Whether banks like JPMorgan and Citi can turn the tide with their entry will become clear in the coming weeks.