Bitcoin News

Story: Bitcoin ETF Allocations Fall in Q1 as Institutions Rebalance

By Pankaj K

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Institutional appetite for Bitcoin appears to have cooled off in the first quarter of 2025, raising concerns about long-term confidence in the flagship cryptocurrency’s…

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One of the most surprising developments came from the State of Wisconsin, which fully exited its position in the BlackRock iShares Bitcoin ETF (IBIT).

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According to data compiled by Fintel, the average portfolio allocation in IBIT among institutional holders dropped by 15.6% during the first quarter.

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Brevan Howard, another major institutional player, also scaled back its IBIT exposure by 15.6%.

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Industry experts believe this institutional pullback may be tied to a shift in the once-lucrative basis trade.

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But as Q1 2025 progressed, that premium collapsed. According to Bitwise Chief Investment Officer Matt Hougan, the basis trade reached its lowest point in March, dropping below 4%.

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Although the premium has since recovered—rising to around 9% at the start of Q2 before slipping just below 8%—the changing dynamic suggests that institutional strategies are…

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This shift in sentiment was also reflected in spot Bitcoin ETF flows. February and March saw over $4 billion in outflows across several major products, underscoring the cooling…

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As of now, Bitcoin is trading around $103,000. According to CryptoQuant’s Bull Score Index—which tracks market momentum—the asset currently holds a reading of 80, a level that…

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Still, the path forward for Bitcoin may depend heavily on whether institutional demand continues to recover. If U.S.

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While the long-term fundamentals of Bitcoin remain intact in the eyes of many analysts, the recent dip in ETF allocations is a reminder that institutional support is not…

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