Bitcoin ETF allocations drop in Q1 – Is institutional confidence fading?
The post Bitcoin ETF allocations drop in Q1 – Is institutional confidence fading? appeared on BitcoinEthereumNews.com.
Hedge funds reduced their BTC exposure in Q1 2025. Fund allocation in BlackRock’s IBIT dropped by 15.6% in the past quarter. Several funds trimmed their Bitcoin [BTC] exposure in Q1 2025. Surprisingly, the state of Wisconsin exited its entire $321 million (100%, orange) in BlackRock iShares Bitcoin ETF (IBIT), according to recent 13-F filings with the SEC. Source: Fintel (IBIT Q1 2025 allocation) The average portfolio allocation in IBIT dropped by 15.6% in the past quarter, data from Fintel showed. BTC ETF- Q1 rebalance Additionally, Millennium Management LLC slashed its IBIT position by 41% to 17.6 million shares and closed its position in the Invesco Galaxy Bitcoin ETF (BTCO). However, the fund added BTC-related exposure from Ark 21Shares and Grayscale Mini. Another hedge fund, Brevan Howard, reduced its IBIT holdings by 15.6%. The rebalancing and reduced exposure weren’t surprising given the market headwinds seen in Q1 2025 amid tariff wars. Over the same period, BTC dropped about 12% in the first three months of the year, up from $109K to $76K. Bitwise CIO, Matt Hougan, told Reuters that the cautious approach may be due to reduced basis trade — the price difference (premium) funds get when they buy spot BTC ETF and short CME BTC Futures. He said, “But that premium collapsed and reached its lowest around the end of March. So I’m not surprised to see hedge funds trim their holdings.” Source: Velo (BTC annualized basis trade) The premium was lucrative and hit a whopping 15%-20% annualized returns in late 2024, added Hougan. However, the basis trade sharply dropped below 4% in March, and may partly explain the reduced interest in the products. In Q2 2025, the premium surged to 9% but has slightly eased below 8% at the time of writing. A similar picture was painted by the…
Filed under: News - @ May 17, 2025 7:19 am