New data has revealed exactly who was selling Bitcoin ETFs at the end of 2025. The pressure did not come from the entire institutional market, but primarily from investment advisors and hedge funds.
According to a Bloomberg Intelligence breakdown of 13F filings, major US asset managers cut their combined exposure to spot Bitcoin ETFs by about 25,000 BTC in Q4 2025. In monetary terms, this is about $1.6 billion.
What 13F Filings Show
Form 13F is a mandatory quarterly report for US managers with assets over $100 million. It records positions at the end of the reporting period and allows for an assessment of institutional investor behavior.
A reduction in the share of Bitcoin ETFs in the reports means a decrease in the number of fund shares, not a direct sale of bitcoin on spot exchanges. However, such changes often translate into real market pressure, as funds are forced to sell the underlying asset during net outflows.
This partly explains why bitcoin remained under pressure even during periods of short-term rebounds.
Who Was the Main Seller
The largest reduction in positions was recorded in two categories:
- Investment advisors: minus about 21,800 BTC
- Hedge funds: minus about 7,700 BTC
- Brokerage firms and banks also reduced exposure, but their contribution was less significant.
At the same time, some participants increased their share—primarily holding structures and some sovereign funds. This indicates a redistribution within the institutional segment, not a total market reversal.
Why This Matters for the Price of Bitcoin
ETF flows have become one of the key drivers of BTC dynamics over the past two years. Periods of sustained inflows were accompanied by growth, while series of outflows intensified corrections.
In 2026, daily flow data show an alternation of positive and negative sessions, but a stable series of inflows has not yet formed. Several large “red” days in February increased market caution.
If institutional investors continue to reduce their ETF share, this creates additional supply on the sellers’ side. Even if some operations are related to hedging or arbitrage, the net effect is reflected in the balance of supply and demand.
Not All Funds Are Bearish
It is important to note that many managers use Bitcoin ETFs not only for long-term bets. For hedge funds, this is a tool for short-term trading, arbitrage, and risk management.
Therefore, a reduction in position in the reports does not always mean a strategic rejection of the asset. It may be a reaction to volatility, a change in portfolio structure, or a temporary shift to a more defensive model.
Nevertheless, the overall signal remains cautious. The weakening of institutional demand coincided with bitcoin’s correction and strengthened the downward phase.
What Happens Next?
The key factor in the coming weeks is the dynamics of ETF flows. If daily inflows stabilize and form a steady positive series, the market may move from a “relief rebound” phase to a more sustainable recovery.
For now, bitcoin remains sensitive to large orders and news about fund positioning. Without the return of systematic institutional demand, it is premature to talk about a full reversal.
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