Professional ownership of US spot Bitcoin ETFs declined sharply in Q1 as Bitcoin’s bear market deepened, suggesting that trading-focused institutions were a meaningful source of selling during the downturn. A CoinShares analysis of quarterly 13F filings found that professional investors reduced Bitcoin ETF exposure to 261,000 BTC from 313,000 BTC, a 17% drop.

The combined value of those holdings fell 35% to $17.8 billion, and the share of total US Bitcoin ETF assets held by 13F filers slipped to 20.8% from 24.7%. “This dataset is consistent with what bitcoin markets have historically looked like in drawdowns,” CoinShares digital asset analyst Matt Kimmell wrote in the report, noting that leveraged and tactical strategies tend to unwind during downturns.

The selling was heavily concentrated among hedge funds and brokerages, which together accounted for roughly 96% of the reduction in exposure. Hedge funds cut their holdings by 31,400 BTC, a 39% retreat, while brokerages reduced exposure by 18,800 BTC, a 53% decline. In contrast, investment advisors—the largest professional cohort with 150,300 BTC in holdings—trimmed exposure by just 5.9%. Banks, meanwhile, added 7,800 BTC, effectively doubling their exposure for the quarter.

The decline in professional ownership coincided with a sharp price correction in Bitcoin. The asset fell about 22% in Q1, extending declines from late 2025 and briefly slipping below $60,000. At its trough, Bitcoin was down roughly 50% from its October 2025 all-time high above $126,000.

Key takeaways

• 13F-based professional exposure to US spot Bitcoin ETFs fell 17% in Q1 to 261,000 BTC; the dollar value dropped 35% to $17.8 billion; 13F filers’ share of ETF assets declined to 20.8% from 24.7%.
• Hedge funds and brokerages accounted for the vast majority of the reductions (about 96%); hedge funds down 39% (31,400 BTC) and brokerages down 53% (18,800 BTC).
• Investment advisors reduced exposure by 5.9%; banks added 7,800 BTC, roughly doubling their holdings.
• Bitcoin’s Q1 price move, down about 22%, aligned with a broader drawdown that began in 2025 and culminated in a roughly 50% peak-to-trough drop from the October 2025 high.
• Regulatory developments provided some optimism: clearer SEC-CFTC delineation and changes affecting retirement accounts were cited as potential long-term tailwinds, even as policy debates continue around the CLARITY Act and market structure logistics.
• Institutional sentiment showed signs of resilience, with traditional players like BlackRock acknowledging BTC’s potential role in diversified portfolios, signaling continued mainstreaming despite regulatory uncertainties.

Regulatory backdrop and what it could mean for markets

CoinShares framed the Q1 regulatory landscape as increasingly constructive for the digital asset ecosystem. The report notes progress toward clearer boundaries between the SEC and CFTC, along with proposals that would affect how digital assets are treated within retirement accounts. These strides arrive amid ongoing regulatory narratives about market structure and asset classification that could influence product design and institutional participation in the years ahead.

The regulatory drumbeat extended into ongoing agency planning. The U.S. Securities and Exchange Commission (SEC) has signaled digital assets as a strategic priority through 2030, with a draft strategic plan outlining an aim to build a firm regulatory foundation “through a rational, coherent, and principled approach.” This emphasis on clarity could reduce some of the overhang that has deterred more conservative institutions from deeper participation in crypto markets.

Industry sentiment and the path forward

Beyond policy, the report underscored a growing openness to Bitcoin among traditional financial institutions. Earlier this year, BlackRock acknowledged Bitcoin’s potential role in diversified portfolios, arguing that conventional stock-and-bond diversification models have become less reliable in post-2020 financial environments. That stance—if replicated by other mainstream asset managers—could translate into steadier demand for BTC exposure, even as the regulatory backdrop remains nuanced.

Yet the market remains shaped by policy debates. The CLARITY Act, a proposed framework intended to define the roles of the SEC and CFTC and to establish a more comprehensive regulatory environment for digital assets, continues to draw scrutiny from banks and industry participants. While some lawmakers anticipate a Senate floor vote as early as August, observers caution that legislative timing and compromise will significantly influence how quickly the sector can move toward clearer, codified rules.

For traders and investors, the Q1 data highlight a broader pattern: professional strategies—especially leveraged and tactical plays—tend to unwind during drawdowns, potentially amplifying short-term volatility while nonetheless signaling the sector’s path toward greater institutional integration if regulatory clarity accelerates.

Analysts and market watchers will be closely watching how 13F reporting evolves in the next quarter, how BTC price action behaves in a backdrop of evolving policy, and whether large incumbents continue to scale into Bitcoin amid ongoing regulatory debates. The interplay between price dynamics and policy clarity will likely shape both product development and institutional appetite in the near term.

Readers should monitor the CLARITY Act’s progression and the SEC’s 2030 strategic plan for more concrete signals about the regulatory environment. As traditional finance engages more deeply with Bitcoin, the coming quarters could reveal whether this period of consolidation among professional holders marks a pause before renewed accumulation or a longer-lasting reweighting of institutions’ crypto portfolios.

Investors will want to watch how regulators finalize responsibilities between the SEC and CFTC, how retirement-account treatment evolves, and whether support from major asset managers persists as the market seeks a clearer, more navigable framework for digital assets.

Apple has advanced plans to use Nvidia’s Blackwell B200 chips in Google data centers for its long-delayed Siri overhaul.

The Information reported that Apple plans to route cloud-based Siri requests through Google’s Nvidia-powered infrastructure after tests on its own Private Cloud Compute system failed to deliver the speed needed for the upgraded assistant. The report said Apple tried to run a modified version of Google’s Gemini model on its PCC servers, but the performance was too slow for practical use.

The expected announcement could come during Apple’s Worldwide Developers Conference keynote on June 8, where the company is also expected to preview iOS 27 and major Apple Intelligence updates. Yahoo Tech reported that the refreshed Siri could arrive for users in September alongside the iOS 27 release.

Apple turns to Google-hosted Nvidia chips

According to The Information, Apple will use Nvidia Blackwell B200 processors hosted inside Google’s data centers to support cloud-based Siri tasks. The move would place part of Siri’s AI workload on outside infrastructure, even though Apple has long preferred to control its hardware, software, and cloud systems.

At WWDC 2024, Apple senior vice president Craig Federighi said cloud-based Apple Intelligence tasks would run on Apple’s own servers through Private Cloud Compute. Apple described PCC as a privacy-focused system built on Mac-series chips that could process requests without storing user data or exposing it to outside parties.

Two years later, The Information’s report suggests Apple needs more powerful AI infrastructure to deliver the Siri features it first promised in 2024.

Privacy remains central to the rollout

MacRumors reported that Apple may keep the Private Cloud Compute name even if some Siri requests move through Google-hosted Nvidia hardware. The report said Apple plans to use Nvidia’s confidential computing technology to protect user data while it is processed in the cloud.

Nvidia says its confidential computing tools encrypt data during processing on supported hardware. For Apple, the feature could help answer privacy questions created by the use of third-party data centers.

The final structure of the system remains unclear, according to MacRumors, because Apple has not publicly explained how PCC branding would apply to Nvidia chips hosted by Google.

Siri overhaul follows years of delays

Yahoo Tech reported that the Siri update will be the assistant’s largest redesign since its 2011 launch. Apple first previewed several planned Siri features in 2024, including personal context awareness and the ability to understand what appears on a user’s iPhone or iPad screen.

The same report said Siri may also receive a dedicated app built to compete with ChatGPT, Claude, and other AI assistants. Yahoo Tech added that Apple plans to place Siri inside the iPhone’s Dynamic Island and let users swipe down from the middle of the screen to begin a conversation.

Nvidia gains another high-profile AI customer

The Information’s report also adds weight to a 2025 rumor that Apple had ordered 250 Nvidia NVL72 servers at about $4 million each. Nvidia introduced the Blackwell B200 architecture in 2024 for large language model training and inference.

Apple has not confirmed the reported arrangement. Still, the WWDC keynote on June 8 is expected to show how far the company has moved in rebuilding Siri after nearly two years of delays.

Kalshi has launched Ethereum perpetual futures in the United States after securing approval for the product, while proposed XRP and other altcoin contracts remain subject to separate regulatory review.

According to a June 4 announcement from Kalshi, the CFTC-regulated prediction market operator has opened trading for Ethereum perpetual futures, extending its push into crypto derivatives after introducing Bitcoin perpetual contracts last week.

Trump-Linked Crypto Firm Has Drawn Fresh Scrutiny as U.S. Regulators Defend Stablecoin Oversight

The Trump-linked crypto firm World Liberty Financial Inc. has drawn fresh scrutiny in Congress as U.S. bank regulators defended their handling of stablecoin rules and charter applications.

The House Financial Services Committee heard sharp exchanges on Thursday as Comptroller of the Currency Jonathan Gould faced questions over World Liberty Trust Company’s application for a national trust-bank charter.

Representative Gregory Meeks, a New York Democrat, asked Gould whether he was “working for the American people” or acting as a “Trump fixer.” Gould rejected the accusation and said Democratic lawmakers had applied the only political pressure he had felt.

Gould told the committee that the Office of the Comptroller of the Currency would review the application under the law governing bank charters. He also said the agency was following ethics rules as it considers World Liberty’s request.

Democrats press OCC over World Liberty charter

Democratic lawmakers have argued that World Liberty’s ties to President Donald Trump and his family raise conflict concerns. They have also cited the firm’s foreign investors and crypto partners, including Binance, while questioning whether the company should receive a U.S. banking charter.

Senator Elizabeth Warren and other Democrats have previously pressed regulators over the same issue, according to Gould’s comments at the hearing. Gould called the pressure “unfortunate and unprecedented” while defending the OCC’s process.

World Liberty is also a stablecoin issuer, which placed the company inside a larger debate over how U.S. agencies should enforce the GENIUS Act.

Regulators move ahead With stablecoin rules

Federal Deposit Insurance Corp. Chairman Travis Hill told lawmakers that regulators had already proposed several rules tied to the GENIUS Act. Hill said the FDIC and other agencies would soon propose a rule requiring customer identification programs for stablecoin issuers.

The hearing focused heavily on how banks, credit unions, and stablecoin companies will operate under the new law. Regulators described the rulemaking process as ongoing, with several requirements still being drafted.

Kyle Hauptman, chairman of the National Credit Union Administration, told lawmakers that stablecoins could make payments faster in the United States. Hauptman said Americans may one day receive tax refunds or emergency government funds on weekends and holidays through stablecoin payment systems.

Representative Brad Sherman, a California Democrat and longtime crypto critic, rejected the idea of using stablecoins for government payments. Sherman told the committee he could not think of a worse idea, arguing that it would legitimize an alternative to the U.S. dollar.

Sherman also said the GENIUS Act bars stablecoin issuers from paying interest. He warned that lawyers may look for ways around that restriction and urged regulators to write rules strong enough to prevent evasion.

Fed faces questions over Kraken access

Federal Reserve Vice Chair for Supervision Michelle Bowman also faced questions about the Fed master account granted to crypto exchange Kraken.

Bowman said Kraken received only limited access to the payments system for an initial 12-month period. She told lawmakers the Fed would monitor the arrangement closely while it prepares formal rules for similar access requests.

Crypto firms are watching the Fed’s policy work because so-called skinny master accounts could give approved companies limited access to central bank payment services.

Hedge funds have reduced their exposure to U.S. spot Bitcoin exchange-traded funds by 39% during the first quarter, as professional investors pulled back from the market amid a steep decline in Bitcoin prices.

According to a CoinShares report based on quarterly 13F filings, hedge funds cut their Bitcoin ETF holdings by 31,400 BTC during Q1. The reduction formed the largest portion of a broader institutional retreat that saw professional investors lower their combined exposure from 313,000 BTC to 261,000 BTC, a decline of 17%.

The report showed that the value of Bitcoin ETF holdings reported by professional investors fell to $17.8 billion, down 35% from the previous quarter. At the same time, the share of total U.S. spot Bitcoin ETF assets held by 13F filers dropped from 24.7% to 20.8%.

CoinShares digital asset analyst Matt Kimmell said the pattern resembles previous Bitcoin market downturns, when leveraged and tactical investors typically reduce positions as prices fall.

Hedge funds and brokerages led the selling

Data from CoinShares showed that hedge funds and brokerages accounted for roughly 96% of the decline in Bitcoin ETF exposure during the quarter.

While hedge funds reduced holdings by 31,400 BTC, brokerages cut another 18,800 BTC, representing a 53% decline from their previous positions. In contrast, investment advisors remained comparatively stable. CoinShares reported that advisors, who collectively held 150,300 BTC at the end of the quarter, reduced exposure by only 5.9%.

Banks moved in the opposite direction. According to the report, the sector added approximately 7,800 BTC worth of Bitcoin ETF exposure during Q1, more than doubling its holdings from the previous quarter.

The institutional pullback occurred alongside a sharp correction in Bitcoin. CoinShares noted that the cryptocurrency lost 22% during the quarter and briefly fell below $60,000 after extending losses that began late last year. At its lowest point, Bitcoin traded roughly 50% below its October 2025 record high above $126,000.

Additional analysis from Citigroup suggests ETF activity continues to play a major role in Bitcoin price performance. In a recent note, the bank estimated that spot Bitcoin ETF flows account for around 45% of weekly fluctuations in Bitcoin returns.

Regulatory developments remain a key focus

While ETF positioning weakened during the quarter, CoinShares highlighted several regulatory developments that could support digital asset adoption over time.

Among the measures cited in the report were ongoing efforts by U.S. regulators to clarify how oversight responsibilities should be divided between the Securities and Exchange Commission and the Commodity Futures Trading Commission. CoinShares also pointed to proposals related to the treatment of digital assets in retirement accounts.

Regulatory discussions have continued beyond the first quarter. Earlier this week, the SEC identified digital assets as a strategic priority through 2030 and stated in a draft policy document that it intends to establish a clearer regulatory framework for digital asset markets.

Attention has also remained on the CLARITY Act, a market structure proposal that would further define the responsibilities of the SEC and CFTC. CoinShares noted that the bill could create a more comprehensive framework for digital assets if enacted.

Separately, Citigroup said it currently assigns roughly a 50% probability to the legislation passing, although the bank believes the chances of approval this year have become less certain.

According to Citigroup, meaningful regulatory progress could improve investor sentiment, which has remained under pressure amid sustained spot Bitcoin ETF outflows.

Bybit has added support for Western Union’s USDPT stablecoin, becoming the first major cryptocurrency exchange to list the dollar-pegged token for trading, transfers, and custody.

According to an announcement released on Thursday, users can now hold, transfer, and trade USDPT on Bybit. The integration gives Western Union’s newly launched stablecoin access to one of the crypto industry’s largest trading venues while adding another dollar-backed asset to Bybit’s stablecoin offering.