Institutions stay diamond‑handed as U.S. spot BTC ETF holdings slip just 3.5% in Q4

Headline: Institutions mostly held their ground — U.S. spot BTC ETF ownership slips only slightly despite Q4 crash Summary Institutional ownership of U.S. spot Bitcoin ETFs barely budged even as BTC plunged in late 2025. Aggregated 13F filings show holdings fell from 532,000 BTC in Q3 2025 to 513,000 BTC in Q4 2025 — a decline of 19,000 BTC, or about 3.5% — leaving institutions still holding just over half a million BTC. That relative stability comes as the market moves into a fresh bear phase in early 2026 and raises the question: will institutions stay diamond‑handed through an extended crypto winter? Key facts and context - Price action and ETF history: Spot BTC ETFs launched in the U.S. in 2024 at the start of this cycle’s bull run. BTC rocketed from roughly $40K to $72K, then $100K, peaking at $126K — a roughly +220% climb from ETF debut levels — before a severe pullback in 2026 that roughly halved the asset’s value. - Cost basis vs. market price: The average cost basis for BTC held in ETFs is about $84.1K. At a press‑time BTC price of $68K, the average ETF holder is roughly 20% underwater, and ETF holdings have now tested levels below that cost basis. - Retail still dominates ETF supply: Of the roughly 1.27 million BTC held across U.S. spot ETFs, retail investors account for over 700,000 BTC, meaning institutions have not overtaken retail control of the ETF pool. (Source: X/Root.) - Institutional share and participation: Institutional ownership rose steadily since 2024, peaking at about 40% by Q3 2025 before stalling late that year. Compared to Q3, institutions’ market share only slipped about 1% into Q4 — a modest decline in a volatile period. - Fewer firms reporting holdings: The number of firms reporting ETF ownership in 13F filings dropped from 2,173 to 1,867 — a 14% decline and the largest fall since 2024. (Source: X/Root.) - Big players adding exposure: Despite the headline decline in firm count, 17 of the top 25 institutional BTC ETF holders increased their exposure in Q4. Names include major banks, sovereign wealth funds and large asset managers such as JPMorgan Chase, Mubadala and BlackRock. - Flows and the road ahead: ETF outflows in early 2026 are tracking levels similar to Q4 2025. The upcoming Q1 2026 13F filings (due in Q2) will be a key read on whether institutions continue to hold or begin trimming in force. (Source: Glassnode.) Why it matters The muted institutional drop amid a deep price drawdown suggests many large holders are reluctant to liquidate into the selloff — a sign of resilience that could help stabilize markets. At the same time, retail still controls the majority of ETF BTC, and the fall in the number of reporting firms hints that smaller or more marginal holders may be capitulating first. The mix of large institutions adding to positions while overall firm count falls produces a picture of consolidation: fewer hands, but some are getting heavier. What to watch next - Q1 2026 13F filings (released in Q2) for a clearer read on institutional flows and positioning. - ETF weekly flows and Glassnode on‑chain/flow data to track whether outflows ease or accelerate. - Price relative to the $84.1K ETF cost basis — sustained trading below this level would increase the likelihood of further distribution. Sources and disclaimer Data: aggregated 13F filings, X/Root, Glassnode. This content is for informational purposes only and is not investment advice. Cryptocurrency trading carries high risk; do your own research before making investment decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news