Bitcoin ETF Shakeout: CoinShares Names Who Sold in Q1 2026

Professional investors cut their bitcoin ETF exposure sharply during the first quarter of 2026, but fresh filings show banks, advisors, and sovereign entities kept stacking sats through the storm. The Q1 2026 numbers, courtesy of CoinShares, paint a clear picture of who flinched and who leaned in. Key takeaways: 13F filers sold 52,500 $BTC during the quarter. JPMorgan and Wells Fargo lifted exposure while hedge funds cut 39%. Spot bitcoin ETF inflows topped $2.3 billion by mid-May, putting Q2 filings in the spotlight.

The Great Bitcoin ETF Shakeout: CoinShares Shows Which Investors Lost Conviction According to a recent CoinShares report from Digital Asset Analyst Matt Kimmell, professional bitcoin holdings fell from 313,000 $BTC equivalent to 261,000 $BTC, a 17% quarter-over-quarter decline. The total value of those holdings dropped 35% to $17.8 billion. The report frames the decline as the largest quarterly reduction in professional ownership since U.S. spot bitcoin ETFs began trading. The share of ETF assets held by 13F filers also slid from 24.7% to 20.8%.

Selling Concentrated Among Traders Kimmell found that hedge funds and brokerages accounted for roughly 95% of the exposure reduction. Hedge funds trimmed 31,400 $BTC, a 39% quarterly decline. Brokerages shed 18,800 $BTC, a 53% drop. Together, the two groups drove nearly all of the professional selling during the quarter. Negative perpetual futures funding rates and the unwinding of basis trades likely accelerated the hedge fund exits, the report notes, while capital competition from AI investments and precious metals may have shifted some allocation decisions. Strategy boss Michael Saylor floated a similar theory on Thursday, a few days after his firm revealed selling 32 $BTC for the first time since 2022. "Capital markets are funding the AI buildout at historic scale: ~$400B over 6 months," Saylor explained on X. "Bitcoin ETFs have seen ~$4B of outflows since May 14, pressuring $BTC. This is a capital rotation, not a bitcoin impairment."

Advisors and Banks Hold Firm While traders de-risked, advisors remained the largest professional cohort with approximately 150,300 $BTC, or about 58% of all reported professional holdings. Advisors trimmed positions by just 5.9% during the quarter and remain up 20% year over year. Banks were among the fastest-growing categories, with bitcoin exposure climbing to roughly 15,200 $BTC, more than doubling during the quarter and rising 339% from a year earlier. JPMorgan Chase added 3,000 $BTC, Wells Fargo added 4,000 $BTC, and Citigroup appeared in filings for the first time. Government entities also expanded exposure. The Emirate of Abu Dhabi's Mubadala Fund added approximately 1,100 $BTC, bringing sovereign holdings to about 8,300 $BTC.

What It Means for Investors Bitcoin fell 22% during Q1, ending the quarter near $68,000 after briefly dropping below $60,000. The decline marked roughly a 50% correction from the October 2025 all-time high above $126,000. On-chain metrics recorded the largest realized losses since July 2023, and sentiment indicators reached historic lows. Despite the selloff, the data suggests a clear distinction between tactical traders and long-term allocators: leveraged participants reduced risk, while advisors, banks, and sovereign entities largely maintained or expanded strategic exposure. Conditions have improved since Q1 ended. U.S. spot bitcoin ETFs attracted roughly $2.3 billion in net inflows through mid-May, and combined ETF and digital asset treasury flows approached $6.4 billion. Investors will be watching Q2 filings in August to see whether professional buying resumed as the market stabilized.