According to a report by Japanese crypto media CoinPost, cited by Techub News, institutional investors' total Bitcoin holdings fell to 261,000 BTC in the first quarter of 2026, representing a 17% quarter-on-quarter decline from an estimated 314,500 BTC in the previous quarter. The drop of approximately 53,500 BTC was largely driven by heavy selling from hedge funds and securities firms, sparking a reassessment of institutional positioning in the post-ETF landscape. The pullback comes after several quarters of steady accumulation following the approval of spot Bitcoin ETFs in 2024, temporarily interrupting the upward momentum in institutional participation.
Detailed figures show that hedge fund Bitcoin exposure was slashed by 39% during the quarter, while securities firms cut holdings by a more dramatic 53%. These two categories, which had been among the major drivers of crypto market rallies, pulled back significantly, dragging down the aggregate institutional tally. Not all institutional segments retreated, however — banks moved in the opposite direction.
The same report highlighted that the banking sector bucked the trend by adding 7,800 BTC to its holdings, marking a year-on-year increase of 339%. Large Wall Street banks such as JPMorgan continued to accumulate Bitcoin assets, signaling sustained interest from traditional financial giants. With the current market phase being characterized as the first major correction of the ETF era, institutional behavior patterns are said to closely resemble those observed during previous Bitcoin price cycles, and there is no sign of a broad exit from the asset class.