Institutional investors sold roughly 52,500 BTC during the first quarter of 2026, bringing total professional holdings down from 313,000 BTC to 261,000 BTC. That 17% quarter-over-quarter decline, detailed in a new CoinShares analysis of 13F filings, translates to approximately $17.8 billion in remaining value, a 35% dip when factoring in the price damage.

The report, published by CoinShares analyst Matt Kimmell around June 3, paints a picture of two very different institutional camps. On one side: hedge funds and brokerages running for the exits. On the other: banks quietly loading up on Bitcoin for the first time in a meaningful way.

Who sold, and how much

Hedge funds and brokerages were responsible for 95% of the total reduction in professional holdings. Hedge funds slashed their Bitcoin exposure by 39%. Brokerages went even harder, cutting positions by 53%. Among the marquee names, Morgan Stanley fully exited its 8,300 BTC position, while Jane Street reduced its holdings by 10,800 BTC.

Net outflows from 13F filers totaled around $3.6 billion for the quarter.

Bitcoin’s price dropped 22% during Q1, ending the quarter at approximately $68,000. US Bitcoin ETF assets under management contracted from 24.7% to 20.8% of their benchmark over the same period, reflecting both price depreciation and redemptions.

Banks and advisors tell a different story

Financial advisors collectively held about 150,300 BTC at the end of Q1, representing 58% of all 13F Bitcoin holdings, with a modest 6% decrease.

Bank holdings more than doubled to 15,200 BTC during the quarter. JPMorgan added approximately 3,000 BTC to its position. Wells Fargo increased by roughly 4,000 BTC. Citigroup filed its first-ever reported Bitcoin position at 97 BTC.

What happened after the quarter ended

Post-Q1, ETF flows turned positive to the tune of $2.3 billion through mid-May. Combined with digital asset treasury flows, the total reached $6.4 billion by mid-May.

What this means for investors

The advisor story is arguably more important for long-term holders. Financial advisors represent sticky capital: retirement accounts, wealth management portfolios, multi-year allocation strategies. The fact that advisors only reduced by 6% while controlling 58% of all institutional Bitcoin suggests the structural bid for BTC among wealth managers remains largely intact.

Morgan Stanley’s complete exit from its 8,300 BTC position deserves particular attention going forward. The firm was one of the earliest major Wall Street names to embrace Bitcoin products for its wealth management clients. The next round of 13F filings, covering Q2, will reveal whether Morgan Stanley bought back in during the April and May recovery, or whether the exit was permanent.