Who Sold Bitcoin During the Crash? Coinshares Reveals Who’s Really Selling Bitcoin ETFs

The Great Bitcoin ETF Shakeout, Coinshares Shows Which Investors Lost Conviction

According to a caller report from Coinshares Digital Asset Analyst Matt Kimmell, nonrecreational bitcoin holdings fell from 313,000 BTC equivalent to 261,000 BTC, a 17% quarter-over-quarter decline. The full worth of those holdings dropped 35% to $17.8 billion.

The study characterizes the diminution arsenic the largest quarterly simplification successful nonrecreational ownership since U.S. spot bitcoin ETFs began trading. The stock of ETF assets held by 13F filers besides declined from 24.7% to 20.8%.

Selling Concentrated Among Traders

Kimmell recovered that hedge funds and brokerages accounted for astir 95% of the vulnerability reduction.

Hedge funds reduced holdings by 31,400 BTC, representing a 39% quarterly decline. Brokerages shed 18,800 BTC, a 53% drop. Together, those groups drove astir each of the nonrecreational selling during the quarter.

Kimmell further noted that antagonistic perpetual futures backing rates and the unwinding of ground trades apt contributed to hedge money exits. Capital contention from artificial quality (AI) investments and precious metals whitethorn person besides influenced allocation decisions.

Strategy brag Michael Saylor described a akin mentation connected Thursday, a fewer days aft his steadfast revealed selling 32 BTC for the archetypal clip since 2022. “Capital markets are backing the AI buildout astatine historical scale: ~$400B implicit 6 months,” Saylor explained connected X. “ Bitcoin ETFs person seen ~$4B of outflows since May 14, pressuring BTC. This is simply a superior rotation, not a bitcoin impairment.”

Advisors and Banks Hold Firm

While traders reduced exposure, advisors remained the largest nonrecreational cohort with astir 150,300 BTC, accounting for astir 58% of each reported nonrecreational holdings. Advisors trimmed positions by conscionable 5.9% during the 4th and stay up 20% twelvemonth implicit year.

Coinshares study representation showing nonrecreational vulnerability gradually connected the rise. Image source: Coinshares’ Bitcoin 13F Q1 2026 report.

Banks were among the fastest-growing categories, the Coinshares study notes. Their bitcoin vulnerability climbed to astir 15,200 BTC, much than doubling during the 4th and rising 339% from a twelvemonth earlier. JPMorgan Chase added 3,000 BTC, Wells Fargo added 4,000 BTC and Citigroup appeared successful filings for the archetypal time.

Government entities besides expanded exposure. The Emirate of Abu Dhabi’s Mubadala Fund added astir 1,100 BTC, bringing sovereign holdings to astir 8,300 BTC.

What It Means for Investors

Bitcoin fell 22% during Q1, ending the 4th adjacent $68,000 aft concisely dropping beneath $60,000. The diminution marked astir a 50% correction from the October 2025 all-time precocious supra $126,000. During that period, on-chain metrics recorded the largest realized losses since July 2023 portion sentiment indicators reached historical lows.

Despite the selloff, Coinshares argues the information suggests a favoritism betwixt tactical traders and semipermanent allocators. Leveraged participants reduced risk, portion advisors, banks, and sovereign entities mostly maintained oregon expanded strategical exposure.

Since Q1 ended, conditions person improved. U.S. spot bitcoin ETFs attracted astir $2.3 cardinal successful nett inflows done mid-May, and combined ETF and integer plus treasury flows approached $6.4 billion. Investors volition intimately ticker Q2 filings successful August to find whether nonrecreational buying resumed arsenic marketplace conditions stabilized.