It is reported that advisory firms and hedge funds jointly sold ETF shares worth approximately 25000 bitcoins, which accelerated the withdrawal of hedge funds that had driven the Bitcoin ETF boom in the United States. This reflects the tactical adjustment of institutional capital in the cryptocurrency field and has attracted market attention.
The 13F report is an important indicator of institutional holdings. Its data shows that in the fourth quarter of 2025, various 13F declaration institutions simultaneously reduced their Bitcoin ETF holdings, with advisory firms and hedge funds showing the most prominent reduction in holdings, with a total reduction corresponding to about 25000 Bitcoin, breaking the previous trend of continuous increase in holdings and marking a shift in the logic of institutional cryptocurrency asset allocation.
Institutional withdrawal trend - hedge funds that once drove the Bitcoin ETF boom in the United States are accelerating their exit. It is reported that top hedge funds have significantly reduced their holdings, with Brevan's holdings in the BlackRock Bitcoin ETF dropping by about 86%, and the value of spot holdings dropping from $2.4 billion to $275 million, becoming the largest seller of the ETF in the fourth quarter. This is a tactical adjustment by institutions based on market changes.
There are multiple logics behind the reduction of institutional holdings: Bitcoin price fluctuations intensified in the fourth quarter of 2025, with a monthly decline of nearly 30% as of February 2026, and institutions reduced their exposure to avoid risks; At the same time, the arbitrage space for Bitcoin basis trading has narrowed, and the annualized return of popular arbitrage strategies has dropped to around 4%, weakening the motivation for hedge funds to participate.
At the macro level, the Federal Reserve's maintenance of unchanged interest rates has brought about liquidity tightening pressure, coupled with a downward trend in risk appetite in the international financial market, prompting institutions to readjust their high volatility asset allocation. Since the approval of the Bitcoin spot ETF by the US SEC in 2024, institutional funds have flooded in, but with the release of leverage risk, institutions have shifted towards prudent allocation; In addition, the cryptocurrency market is highly dependent on institutional funds, and the outflow of funds has led to a trend of reducing holdings, exacerbating the situation of reducing holdings.
It should be noted that this reduction in holdings is not a comprehensive bearish view, but a tactical adjustment. Data shows that some investment advisory firms are still increasing their holdings of Bitcoin ETFs, with a year-on-year increase of 145% in holdings over the past year, representing an uninterrupted layout of long-term funds. This indicates a differentiated attitude towards cryptocurrency among institutions, with short-term speculative capital withdrawing and long-term capital steadily entering the market, and the industry undergoing a positive value driven transformation.
Industry insiders say that the collective reduction of holdings by 13F institutions in the fourth quarter is a rational return of institutional capital. As the cryptocurrency market matures, institutions pay more attention to risk management and rational allocation. In the future, institutional layout may become more differentiated, and tactical adjustments will become the norm. The cryptocurrency market will develop towards standardization and stability, and the price of Bitcoin, institutional holdings, and arbitrage space will affect market trends.
HongKong.info Committed to providing fair and transparent reports. This article aims to provide accurate and timely information, but should not be construed as financial or investment advice. Due to the rapidly changing market conditions, we recommend that you verify the information yourself and consult a professional before making any decisions based on this information.
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