U.S. institutional filings for the second quarter show professional money managers increased their reported exposure to Bitcoin-linked products even as Bitcoin fell 14.2% during the period, but the buying was increasingly concentrated among fewer firms and often paired with options positions designed to manage downside risk.
Form 13F reports filed with the U.S. Securities and Exchange Commission by the Aug. 14 deadline indicate that reported institutional exposure to Bitcoin, calculated from the underlying BTC held by disclosed products, rose to about 536,000 BTC from roughly 498,000 BTC in the first quarter. That represents a 7.5% increase, based on calculations from the filings.
The rise came during a quarter when the total Bitcoin held by exchange-traded funds declined. ETF Bitcoin reserves fell about 6.6%, to roughly 1.211 million BTC from 1.297 million BTC, according to ETF holdings data. U.S. spot Bitcoin ETFs also recorded net redemptions during the quarter, including about $2.4 billion in May and $4.5 billion in June, according to fund-flow figures cited in the disclosures. June was described as the weakest month for the products since their launch.
The pattern suggests that reported institutional buying did not offset broad ETF selling. Instead, larger managers appear to have accumulated or maintained selected allocations while other ETF holders withdrew funds. The number of institutions reporting Bitcoin ETF positions fell to about 1,900 in the second quarter, from roughly 2,000 in the prior quarter, concentrating disclosed exposure among a smaller group of filers.
Options activity reshapes Bitcoin ETF exposure
Several prominent trading firms reduced direct holdings of BlackRock’s iShares Bitcoin Trust, known as IBIT, while expanding positions in calls and puts linked to the fund. Such derivatives can provide exposure to price gains, hedge an existing holding, or support trading strategies that do not require holding ETF shares outright.
Brevan Howard reduced its direct IBIT position from 24.3 million shares to 7.21 million shares, a decline of about 70.4%, according to its SEC filing. At the same time, it reported call options tied to roughly 7.23 million IBIT shares and put options linked to 5.27 million shares.
Graham Capital also cut its IBIT shareholding sharply, reducing it from about 926,000 shares to 259,000 shares. Its filing showed put options on roughly 1.74 million IBIT shares, with a declared value of about $57.94 million. Millennium Management lowered its direct IBIT position by about 49.8%, from 19.29 million shares to 9.69 million shares.
The most aggressive disclosed expansion came from Jane Street, which increased its IBIT holding by about 324% to 24.9 million shares. Its reported spot Bitcoin ETF exposure totaled about $990 million, including roughly $828 million connected to IBIT.
UBS raised its directly held IBIT shares by about 12% to 407,890, while the number of shares underlying its IBIT call options rose from 80,000 to roughly 1.95 million. Its disclosed put-option exposure fell about 53%. Tudor Investment Corp. increased its direct IBIT position by nearly 20% to 688,500 shares while reducing calls tied to IBIT by about 85%, to roughly 148,000 shares.
The mix of spot ETFs and derivatives leaves the 13F figures open to different interpretations. A larger direct ETF position can reflect a longer-term allocation, while an options book may serve as a hedge, a volatility trade, or a temporary position around market moves. The filings disclose holdings at quarter-end but do not reveal the strategy behind each trade.
Ether allocations rose faster at major banks
Ether-linked ETFs attracted some of the largest percentage increases in reported bank allocations, even though U.S. spot Ether ETFs recorded net outflows over the full second quarter.
Calculations using underlying asset amounts showed Morgan Stanley’s Bitcoin exposure increased 3.7% during the quarter, while its Ether exposure rose 18.6%. JPMorgan Chase’s reported Bitcoin exposure grew 12.2%, compared with a 67.3% increase in Ether exposure.
Morgan Stanley increased its position in BlackRock’s iShares Ethereum Trust, ETHA, by about 202% to 4.6 million shares. JPMorgan increased its ETHA holding by about 338% to nearly 1.17 million shares. Bank of America expanded its ETHA position from about 67,500 shares to about 1.98 million shares, roughly 29 times its first-quarter level.
Those increases occurred against negative aggregate flows. Spot Ether ETFs received about $356 million of net inflows in April, followed by net outflows of roughly $541 million in May and $529 million in June, producing a second-quarter net outflow of about $714 million.
Early third-quarter figures pointed to a reversal. Ether ETFs received approximately $365 million in July and another $243 million in August through the period covered by the data, exceeding $600 million combined. Ether rose from about $1,570 at the end of June to around $1,900, a gain of roughly 20%.
Crypto equities and alternative token funds draw selective interest
Institutional positioning in crypto-linked equities was mixed. Bank of America reduced its Strategy stake by about 70%, from approximately 3.97 million shares to 1.18 million shares. Renaissance Technologies bought 422,881 shares, lifting its total holding to 2.55 million shares valued at about $242.3 million. BlackRock increased its Strategy position to about 19.39 million shares, valued at about $1.69 billion.
Strategy’s profile changed during the quarter after it sold 32 BTC at the end of May to pay preferred dividends. Its board also authorized a framework on June 29 that would permit up to $1.25 billion in Bitcoin sales.
Morgan Stanley expanded its Circle position from about 1.46 million shares to 8.32 million shares. It also reduced its Coinbase holding by roughly 550,000 shares. ARK Investment Management increased Coinbase by about 5.8% to 2.51 million shares, while cutting its Robinhood position by about 12.8%.
Filings also show growing institutional willingness to test funds tied to assets beyond Bitcoin and Ether. Morgan Stanley reported positions valued at about $4.25 million in a Grayscale Solana staking ETF and $2.26 million in a Fidelity Solana fund. JPMorgan opened a position in a Bitwise Solana staking ETF and resumed a small XRP allocation through Bitwise and Grayscale products after exiting such exposure in the first quarter.
Among longer-term holders, Mubadala and Abu Dhabi Investment Authority kept their IBIT positions unchanged at about 14.7219 million and 8.2187 million shares, respectively. Harvard’s endowment also retained about 3.0446 million IBIT shares, valued at roughly $101.4 million. Its disclosed holdings in the iShares Gold Trust and SPDR Gold Trust totaled about $171.2 million, leaving gold as the larger allocation within those reported holdings.
To understand how institutional demand shapes crypto prices, explore our in-depth guide on ETF mechanics and market flows.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
