Bitcoin ETF holdings fall in Q4 as 13F cite basis unwind

Q4 13F filings show advisors and hedge funds cut Bitcoin ETF stakes

Q4 13F disclosures indicate institutions reduced their Bitcoin ETF holdings, with investment advisors and hedge funds responsible for most net selling. The pattern points to cohort-specific de-risking rather than broad-based capitulation.

According to James Seyffart, a Bloomberg ETF analyst, 13F filers sharply cut Bitcoin ETF positions in Q4 2025, led by asset managers and hedge funds. His estimate put the reduction at roughly 25,000 BTC.

As reported by BeInCrypto, the decrease equated to nearly $1.6 billion in exposure among 13F filers. The report also showed the largest net reductions came from advisors and hedge fund managers.

Why institutions sold: basis-trade unwind and tactical repositioning

A key driver was the unwind of a futures-versus-spot “basis” trade as spreads compressed, removing a low-risk arbitrage that had attracted hedge funds. That compression encouraged exits irrespective of long-term Bitcoin views.

“It was an arbitrage strategy that required no view on Bitcoin whatsoever. … When that difference disappeared, so did they,” said Pavel Efremog, Director at FinchTrade, in CCN.

Outside of arbitrage, some managers appear to have tactically reduced risk and rebalanced exposures as Q4 positioning shifted. These moves reflect portfolio management choices more than a structural rejection of crypto.

In holdings terms, the cuts are visible in 13F tallies and were concentrated in specific cohorts. The pattern reflects Q4 positioning adjustments by those filers rather than a real‑time read of daily flows.

At the time of this writing, Bitcoin trades around $65,584 with very high 10.41% volatility and a bearish sentiment reading. Such conditions can heighten market sensitivity to concentrated redemptions.

What to watch next in institutional crypto allocations

Signals to monitor: next 13F cycle, cohort shifts, ETF flows

The next 13F cycle will clarify whether hedge fund selling was a one-off basis-trade unwind or a continuing de‑risking. Changes in advisor allocations and primary ETF flow patterns will help separate tactical moves from strategic shifts.

Case study: Harvard’s IBIT trim and Ethereum rotation context

Decrypt reported that Harvard Management Company cut its stake in BlackRock’s iShares Bitcoin Trust (IBIT) by roughly 20% in Q4 while opening a position in a spot Ethereum ETF. Observers interpret this as diversification and a more differentiated view across digital assets.

FAQ about Bitcoin ETF outflows

Who were the biggest sellers, hedge funds or financial advisors, and why did they reduce exposure?

Advisors and hedge funds were the largest net sellers. Many hedge funds unwound a basis trade as spreads compressed; others repositioned tactically.

How much Bitcoin exposure was sold in Q4 2025 (BTC and USD terms), and how significant is it versus total ETF AUM?

About 25,000 BTC and roughly $1.6 billion among 13F filers. Relative significance cannot be determined here; the figures only reflect reported 13F holders.