According to Gate market data, as of February 25, 2026, the price of Bitcoin (BTC) hovered around $65,222. Despite a 3.86% rebound over the past 24 hours, Bitcoin has still dropped 25.91% over the last 30 days. Persistent capital outflows and weak institutional demand have become key factors weighing on the market. The latest 13F filings reveal the real picture behind this sell-off—who is reducing their holdings, and why? In this article, we’ll break down the latest data to provide a detailed look at how major US market players are adjusting their positions.
Institutions Reduce Bitcoin ETF Holdings: Who’s Selling?
Recent disclosures show that large US investors made significant adjustments to their Bitcoin ETF holdings in Q4 2025. According to Bloomberg Industry Research, major institutions filing 13F reports with the US Securities and Exchange Commission collectively sold nearly $1.6 billion worth of Bitcoin ETF shares in Q4, equivalent to about 25,000 BTC. This shift in positions coincided with Bitcoin’s retreat from its $120,000 peak and helps explain the ongoing market correction.
What 13F Filings Reveal About Institutional Moves
The 13F filing is a quarterly report that US institutional investors managing over $100 million in assets are required to submit, disclosing their holdings as of the end of each quarter. While these filings reflect positions at quarter-end, they offer a crucial window into the actions of so-called "smart money." The data for Q4 2025 clearly shows that these large institutions, on the whole, reduced their exposure to Bitcoin ETFs rather than increasing it.
The Main Sellers: Investment Advisors and Hedge Funds
A closer look at the data reveals that the bulk of this selling came from specific types of institutions.
- Investment Advisors: As one of the largest groups holding Bitcoin ETFs, investment advisors reduced their ETF holdings by the equivalent of about 21,831 BTC in Q4.
- Hedge Fund Managers: Another major group—hedge funds—also cut their positions by around 7,694 BTC.
- Other Participants: Institutions such as banks and brokerages also generally scaled back their risk exposure.
This concentrated selling helps explain why the price of Bitcoin has remained under pressure even during recent rebounds. While some entities, such as holding companies or government-related organizations, have increased their positions, the overall decline in institutional holdings is directly reflected in the ongoing ETF outflows.
Recent ETF Market Performance
Moving into 2026, this trend of outflows has yet to reverse. By late February, US spot Bitcoin ETFs had experienced several consecutive weeks of net outflows. According to SoSoValue, on February 23 alone, spot Bitcoin ETFs saw a single-day net outflow of $204 million. Looking at a longer timeframe, the 12 spot Bitcoin ETFs collectively saw net outflows of about $316 million for the week ending February 20, continuing the previous trend. This persistent selling pressure indicates that institutional investors are lowering their risk appetite, with de-risking and portfolio rebalancing as the dominant themes.
US Bitcoin ETF inflows and outflows in 2026. Source: SoSoValue
What the Data Means for the Market
It’s important to note that a reduction in holdings shown in 13F filings doesn’t necessarily mean institutions are directly selling Bitcoin on exchanges. Most of these moves involve redeeming ETF shares, but they still create real selling pressure in the spot market. Analysts point out that current ETF outflows are occurring alongside net inflows of Bitcoin to exchanges, indicating that institutional demand has not absorbed the new supply and, in fact, has become an additional source of selling pressure.
Bitcoin price trend over the past month. Source: CoinGecko
On the Gate market page, as of February 25, 2026, Bitcoin (BTC) was priced at $65,222, up 3.86% in 24 hours, but still down 25.91% over the past 30 days. Market sentiment is currently "neutral," reflecting the ongoing tug-of-war between capital flows amid macroeconomic uncertainty.
Bitcoin price. Source: Gate
Conclusion
Drawing on both 13F filings and recent ETF flow data, it’s clear that major US market participants—especially investment advisors and hedge funds—have been the primary sellers of Bitcoin ETFs in recent months. Their actions have led to a decline in overall institutional holdings and have become a key factor affecting Bitcoin’s price recovery. While there are occasional days of net inflows, unless the persistent outflow trend sees a meaningful reversal, the market is likely to remain in a period of volatility as it searches for a bottom.
