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$104,616 ETFs. This marks the first decrease since these funds were launched in January 2024. The financial disclosures were made through 13F reports to the U.S. Securities and Exchange Commission. According to the report, large investors’ holdings in Bitcoin ETFs fell from $27.4 billion at the end of the last quarter of 2024 to $21.2 billion by the end of the first quarter of 2025. This signifies an approximate 23% decrease compared to the previous quarter.
ContentsBTC ETF ReportThe Role of Market Regulations and Expectations
BTC ETF Report
Analyzed by the crypto asset investment firm CoinShares, the reduction in investment stems from an 11% value decline in bitcoin during the first quarter and profit-taking by hedge funds. CoinShares emphasizes that this should be viewed not as a sign of a long-term institutional retreat, but as a strategic realignment of short-term positions.
“In our view, this development is the result of closing positions, taking profits, and reducing Bitcoin exposure following significant gains after the U.S. elections and ETF launches,” explains CoinShares.
The reports also highlight that advisory firms like BlackRock and Goldman Sachs have increased their Bitcoin ETF holdings in BTC terms. Despite the declining price of BTC, these firms have raised their BTC amounts, while hedge funds have reduced their holdings by one-third.
While large investors hold about 20% of the total Bitcoin ETF assets, individual investors and small investment firms continue to dominate the market. The latest data shows individual and small investors holding about $71 billion in ETFs, while institutional investors hold approximately $21 billion.
Nonetheless, CoinShares notes that the trend of accumulating Bitcoin among institutions continues. Since the start of 2025, the total amount of BTC held by companies has risen by about 19%, increasing from 1.68 million to 1.98 million by May 2025.
The Role of Market Regulations and Expectations
According to CoinShares, Bitcoin ETFs still have growth potential in the long term. Standardizing market regulations and approval from oversight committees could pave the way for more institutions to turn to Bitcoin ETFs. The company’s analysis suggests that the observed data decline is a temporary market adjustment, with institutional investors expected to increase their interest in digital assets over the long term.
However, the average institutional investor allocation is still below 1%, and the growth potential for corporate Bitcoin ETF investments remains high. Experts believe broader institutional participation could accelerate sector growth in the coming years.
Analyses reveal that short-term declines in the Bitcoin ETF market result from strategic investment decisions and profit-taking but foresee a rise in institutional interest and involvement over time. The market is expected to reach a larger volume, influenced by institutional behaviors. Greater regulatory clarity and enhanced professional knowledge could support increased investments from major institutions.
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