Prominent management firms have revised their investment strategies, cutting exposure to BTC exchange-traded funds (ETFs) following a 12% drop in the crypto during the first quarter of 2025. This decision was made by several key players, including Millennium Management LLC, which divested 41% of its stocks in the iShares Bitcoin Trust ETF.
Matt Hougan, chief investment officer at Bitwise Asset Management, says the recent withdrawals are linked to the decline in the premium associated with BTC contracts. This premium allowed hedge funds to engage in highly lucrative trading. Some financial institutions that had strategically entered the market continued to expand their positions. Notably, the Abu Dhabi sovereign wealth fund Mubadala boosted its investment in the iShares ETF to 8.7 million stocks.
In a significant move, Brown University made its inaugural investment in the BTC ETFs. This university had not previously participated in the cryptocurrency market. The institution acquired assets valued at $4.9 million. In contrast, a Wisconsin pension fund completely liquidated its position in the iShares Bitcoin Trust ETF, selling 6 million stocks in the first quarter of this year.