Institutional investors sold roughly 52,500 Bitcoin during the first quarter of 2026, reducing professional holdings from 313,000 BTC to 261,000 BTC. That 17% drop, detailed in a CoinShares analysis of 13F filings, brings the remaining value to approximately $17.8 billion.
The report, published by analyst Matt Kimmell around June 3, shows two different institutional strategies. Hedge funds and brokerages ran for the exits, while banks quietly increased their Bitcoin exposure.
Hedge funds cut their Bitcoin exposure by 39%, brokerages by 53%. Morgan Stanley fully exited its 8,300 BTC position, and Jane Street reduced holdings by 10,800 BTC. Net outflows from 13F filers totaled $3.6 billion for the quarter.
Bitcoin's price dropped 22% during Q1, ending at approximately $68,000.
Meanwhile, bank holdings more than doubled to 15,200 BTC. JPMorgan added 3,000 BTC, Wells Fargo increased by 4,000 BTC, and Citigroup filed its first Bitcoin position at 97 BTC.
Financial advisors, representing 58% of all institutional holdings, only reduced by 6%-suggesting the structural demand from wealth managers remains intact.
Post-Q1, ETF flows turned positive, adding $2.3 billion through mid-May. Combined with treasury flows, the total reached $6.4 billion.