A number of high-profile asset managers cut their stakes in spot bitcoin exchange-traded funds amid a 12% drop in the cryptocurrency’s price in the first quarter of 2025, according to recent regulatory filings.
This marks a shift from previous quarters when asset managers had typically increased their holdings in spot bitcoin ETFs, as shown in previous quarterly 13-F filings with the Securities and Exchange Commission.
Spot bitcoin ETFs, which made their market debut in January 2024, now paint a more complex picture. Hedge funds trimmed their holdings while some financial advisory firms and wealth funds boosted or rebalanced their positions.
“What we witnessed in the first quarter was the collapse of the premium that people were paying for bitcoin futures, which had set up a very lucrative basis trade,” said Matt Hougan, chief investment officer of Bitwise Asset Manager.
Hedge funds seeking to profit from the spread between spot and futures prices could capture annualized yields in the region of 15%, Hougan said.
“But that premium collapsed and reached its nadir around the end of March,” he said. “So I’m not surprised to see hedge funds trim their holdings.”
Millennium Management LLC cut its holdings of iShares Bitcoin Trust ETF IBIT by 41% to 17.6 million shares and exited its position in the Invesco Galaxy Bitcoin ETF 
BTCO. It increased its stake in only two ETFs, boosting its holdings of the ARK 21 Shares Bitcoin ETF 
ARKB and the Grayscale Bitcoin Mini Trust 
BTC.
Jersey-based Brevan Howard trimmed its stake in the iShares ETF by 15.6%.
The State of Wisconsin Investment Board, one of the earliest institutional investors to make a significant allocation to spot bitcoin ETFs in the first quarter of 2024, sold its entire six million share position in the iShares Bitcoin Trust 
IBIT in the first three months of this year.
Meanwhile, Brown University made its first foray into cryptocurrency ETF ownership during the same period, acquiring a stake in the same ETF, worth $4.9 million at the end of March.
Neither the state pension fund nor representatives from Brown University responded to requests for comment on their moves.
Abu Dhabi’s Mubadala sovereign wealth fund added to its holdings of the iShares ETF in the first quarter, bringing its total position to 8,726,972 shares, valued at $408.5 million.
“What will be most important for me is whether, when all the data is finally in and we can analyze it, more investment advisory firms are stepping in,” said Hougan.
“That wave of adoption may be a slow-moving train, but it has forward momentum.”
