Hedge funds sold off roughly 52,000 Bitcoin worth of spot Bitcoin ETF shares during the first quarter of 2024, according to newly analyzed regulatory filings. The exodus came as the market slid, but the selling wasn't universal — banks and long-term allocators actually increased their positions, signaling a changing of the guard among institutional holders.
52,000 BTC in ETF shares flipped
The 52,000 BTC figure represents the net selling by professional investors in the cohort that files quarterly 13F reports. That's a meaningful chunk of the total shares outstanding across all U.S. spot Bitcoin ETFs. The sell-off was concentrated among hedge funds, many of which had piled into the products shortly after their January 2024 launch and then retreated when prices dropped.
Banks step in as hedge funds pull back
The filings show a clear rotation. While hedge funds cut exposure, banks and other long-term allocators — think pension funds, endowments, and registered investment advisors — boosted their holdings. That shift matters because it suggests a different kind of conviction: hedge funds often trade momentum, while banks and endowments tend to hold. The Q1 2024 data is the first hard look at who actually owns these ETFs after the initial hype faded.
What the numbers don't say
The 13F filings cover only a slice of the market — large institutional investors with more than $100 million in equities. Retail and smaller funds aren't included. So the 52,000 BTC figure is likely just part of the story. Still, the direction is clear: the fast money left, and the steady money arrived. Whether that pattern held in Q2 2024 won't be known until the next batch of filings lands later this year.
