Key Takeaways:
Coinshares reported 52.5K BTC sold by 13F filers in Q1 2026.JPMorgan and Wells Fargo lifted bitcoin exposure as hedge funds cut 39%. Bitcoin ETF inflows topped $2.3B by mid-May, shifting focus to Q2 filings.Kimmell found that hedge funds and brokerages accounted for roughly 95% of the exposure reduction.
Kimmell further noted that negative perpetual futures funding rates and the unwinding of basis trades likely contributed to hedge fund exits. Capital competition from artificial intelligence (AI) investments and precious metals may have also influenced allocation decisions.
Advisors and Banks Hold FirmDespite the selloff, Coinshares argues the data suggests a distinction between tactical traders and long-term allocators. Leveraged participants reduced risk, while advisors, banks, and sovereign entities largely maintained or expanded strategic exposure.
