Professional investors cut Bitcoin ETF holdings sharply in Q1 2026 amid market downturn.

In Q1 2026, professional investors reduced their Bitcoin ETF holdings by 17%, selling 52,500 BTC amid a 22% price drop and market correction. Hedge funds and brokerages led the sell-off, cutting exposure by 39% and 53% respectively, influenced by negative futures funding and capital shifts to AI and precious metals. However, banks, advisors, and sovereign entities increased or maintained their Bitcoin positions, signaling confidence in long-term value. Bitcoin ETF inflows rebounded with $2.3 billion added by mid-May, suggesting potential stabilization and renewed buying in Q2.