Major Banks Reduce Positions in Bitcoin ETFs, Sovereign Funds Increase

There has been a shift in the ownership structure of Bitcoin ETFs: major Wall Street trading firms are reducing their positions, while sovereign funds and asset managers are increasing theirs. According to Galaxy Research, by the end of September 2025, institutions reporting to the SEC owned about 355,000 BTC equivalent in spot Bitcoin ETFs. By June 2026, this figure had decreased to approximately 307,000 BTC – a 14% decline.

Who sold and who bought

Nine financial firms collectively reduced their exposure by 68,000 BTC – more than the overall institutional decline of 48,000 BTC. Among them are Goldman Sachs, Millennium Management, Brevan Howard, and Tudor Investment. Other reporting institutions, on the contrary, added an average of 20,000 BTC. Institutional demand has not disappeared – ownership is being redistributed among different types of investors.

Reason for sales

One reason is the cash-and-carry strategy: hedge funds simultaneously buy spot bitcoins and sell futures, profiting from the price difference. The strategy loses its appeal when the premium falls. According to Galaxy, the annual premium on futures for the nearest month decreased from 7.9% at the peak of October 2025 to 4.8% 30 days before October 21, 2026. Such sales should not be interpreted as a negative forecast for the price of Bitcoin.

Long-term investors

While trading firms were reducing exposure, a number of long-term investors acted in the opposite manner. Among the buyers are Morgan Stanley Wealth Management, Mubadala, and Abu Dhabi Investment Council. Sovereign funds may pursue different goals: portfolio diversification and long-term opportunities, rather than short-term price differences. However, institutional purchases do not guarantee a rise in Bitcoin's price.

ETFs held up better than the price

From the peak of October 2025 to the low of July 2026, assets in Bitcoin ETFs decreased by approximately 11%, while the price of Bitcoin fell by 53%. From the June low, funds accumulated about 87,000 BTC amid a reduction in leveraged positions in futures. This suggests that purchases reflect direct investment demand, rather than a new wave of arbitrage. Future reports will show if the shift continues; a recovery in the premium could bring trading firms back to the market.