Institutions led BTC sell-off in Q1, analysis shows

Professional investors, including hedge funds, securities firms, and investment advisors, reduced their spot Bitcoin ETF holdings by 17% in the first quarter, selling approximately 52,000 BTC, Cointelegraph reported, citing an analysis from CoinShares. These investors decreased their total holdings from 313,000 BTC to 261,000 BTC. Among them, hedge funds cut their holdings by 39% and securities firms by 53%. Investment advisors, who held the largest amount, reduced their positions by a more modest 5.9%. In contrast, banks more than doubled their holdings during the same period, adding 7,800 BTC. Bitcoin's price fell by about 22% in the first quarter, at one point dropping below $60,000. CoinShares noted that despite market volatility, regulators have been working to clarify supervisory jurisdiction between the U.S. SEC and the CFTC, and proposals regarding the handling of cryptocurrency in retirement accounts have also been addressed. The firm added that the regulatory foundation for crypto has recently been improving and that BTC adoption among traditional financial institutions is spreading. The market is now focused on the potential passage of the CLARITY Act, which is expected to face a Senate vote as early as August.