{"id":514860,"date":"2026-01-15T21:05:20","date_gmt":"2026-01-15T21:05:20","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=514860"},"modified":"2026-01-15T15:22:29","modified_gmt":"2026-01-15T15:22:29","slug":"why-wall-street-refuses-to-sell-bitcoin-and-actually-bought-way-more-even-while-losing-25-of-its-value","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/why-wall-street-refuses-to-sell-bitcoin-and-actually-bought-way-more-even-while-losing-25-of-its-value\/","title":{"rendered":"Why Wall Street refuses to sell Bitcoin &#8211; and actually bought way more &#8211; even while losing 25% of its value"},"content":{"rendered":"<p>Institutional investment managers increased their allocations to US spot <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> exchange-traded funds (ETFs) during the fourth quarter of 2025, despite the asset suffering\u00a0a sharp price correction that shaved nearly a quarter off its market value.<\/p>\n<p>The divergence between rising share counts and falling asset values presents a complex picture of institutional behavior during a period of extreme volatility.<\/p>\n<p>According to <em>CryptoSlate's<\/em> data, Bitcoin's price began the last three months of last year on a strong footing, reaching a <a href=\"https:\/\/cryptoslate.com\/here-is-why-bitcoin-registered-its-first-red-october-in-7-years\/\">new all-time high of more than $126,000 in October<\/a>.<\/p>\n<p>However, that rally proved unsustainable and gave way to a tumultuous period <a href=\"https:\/\/cryptoslate.com\/bitcoins-whipsaw-to-101k-wipes-out-7b-in-leveraged-positions\/\">sparked by a massive $20 billion deleveraging event.<\/a> By the time the year concluded, Bitcoin was trading under $90,000.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/bitcoins-whipsaw-to-101k-wipes-out-7b-in-leveraged-positions\/\" class=\"cs-article-embed__link\">\n                    <div class=\"cs-article-embed__media\">\n                <img src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/10\/btc-whipsaw-1024x538.jpg\" alt=\"Bitcoin's whipsaw to $105k wipes out $7B in leveraged positions\" loading=\"lazy\" decoding=\"async\">\n            <\/div>\n                <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Bitcoin's whipsaw to $105k wipes out $7B in leveraged positions<\/h3>\n                            <div class=\"cs-article-embed__summary\">Massive sell-off causes over $7 billion in liquidations, exposing crypto&#039;s structural weaknesses during volatile trading.<\/div>\n                                        <div class=\"cs-article-embed__meta\">\n                                            <span class=\"cs-article-embed__meta-item\">Oct 10, 2025<\/span>\n                                                                <span class=\"cs-article-embed__meta-divider\">&middot;<\/span>\n                                                                <span class=\"cs-article-embed__meta-item\">Assad Jafri<\/span>\n                                    <\/div>\n                    <\/div>\n    <\/a>\n<\/div>\n\n<p>Despite this turbulent backdrop, early regulatory filings suggest that professional money managers viewed the pullback as a buying opportunity rather than a reason to exit the market.<\/p>\n<p>As of press time, BTC has since returned to an upward momentum this year and is eyeing a break above $100,000.<\/p>\n<h2>The accumulation math<\/h2>\n<p>An early analysis of 13F <a href=\"https:\/\/x.com\/SaniExp\/status\/2010745516812833146\">filings<\/a> compiled by Bitcoin analyst Sani revealed that 121 institutions reported a net increase of 892,610 shares across various <a href=\"https:\/\/cryptoslate.com\/two-years-of-bitcoin-etfs-56-6b-later-wall-street-owns-the-bid\/\">US-listed spot Bitcoin ETFs<\/a> from the third quarter to the fourth quarter of 2025.<\/p>\n<figure id=\"attachment_514922\" aria-describedby=\"caption-attachment-514922\" style=\"width: 1454px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-514922\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/01\/G-eaB0UWUAAvHAC.png\" alt=\"Bitcoin ETFs\" width=\"1454\" height=\"928\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/01\/G-eaB0UWUAAvHAC.png 1454w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/01\/G-eaB0UWUAAvHAC-300x191.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/01\/G-eaB0UWUAAvHAC-1024x654.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/01\/G-eaB0UWUAAvHAC-768x490.png 768w\" sizes=\"(max-width: 1454px) 100vw, 1454px\" \/><figcaption id=\"caption-attachment-514922\" class=\"wp-caption-text\">Institutional Investors 13F Filings Showing Their Bitcoin Exposure (Source: Sani)<\/figcaption><\/figure>\n<p>Paradoxically, while the physical number of shares held by these firms increased, the aggregate dollar value of those holdings fell by approximately $19.2 million.<\/p>\n<p>To understand this dynamic, one must look at the raw totals reported by these firms. In the third quarter of 2025, the tracked institutions held a collective 5,252,364 shares valued at roughly $317.8 million.<\/p>\n<p>By the end of the fourth quarter, their holdings had swelled to 6,144,974 shares, yet <a href=\"https:\/\/cryptoslate.com\/bitcoin-just-missed-its-95k-boxing-day-record-triggering-a-historical-signal-that-demands-immediate-attention-for-holders\/\">the market value of that larger pile had shrunk<\/a> to $298.6 million.<\/p>\n<p>This math reveals the extent of the drawdown. Based on these filings, the implied average value per ETF share held by these institutions dropped from approximately $60.50 in Q3 to roughly $48.60 in Q4. That marks a decline of roughly 19.7%.<\/p>\n<p>Despite this repricing, the total share count held by these managers rose by about 17%.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/bitcoin-just-missed-its-95k-boxing-day-record-triggering-a-historical-signal-that-demands-immediate-attention-for-holders\/\" class=\"cs-article-embed__link\">\n                    <div class=\"cs-article-embed__media\">\n                <img src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/bitcoin-boxing-day--1024x538.jpg\" alt=\"Bitcoin misses $95k Christmas price target revealing critical signal for traders\" loading=\"lazy\" decoding=\"async\">\n            <\/div>\n                <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Bitcoin misses $95k Christmas price target revealing critical signal for traders<\/h3>\n                            <div class=\"cs-article-embed__summary\">The drop to $88,500 isn&#039;t random noise; historical data confirms that this specific year-end deviation exposes exactly how institutional risk budgets are tightening for 2025.<\/div>\n                                        <div class=\"cs-article-embed__meta\">\n                                            <span class=\"cs-article-embed__meta-item\">Dec 26, 2025<\/span>\n                                                                <span class=\"cs-article-embed__meta-divider\">&middot;<\/span>\n                                                                <span class=\"cs-article-embed__meta-item\">Liam &#039;Akiba&#039; Wright<\/span>\n                                    <\/div>\n                    <\/div>\n    <\/a>\n<\/div>\n\n<p>The narrative emerging from the data is clear. These investors continued to buy units even as the mark-to-market value of their holdings evaporated, adding exposure directly into the teeth of a drawdown.<\/p>\n<p>For context, Dartmouth College\u2019s $9 billion endowment fund revealed it had acquired around $15 million in shares of BlackRock's IBIT and <a href=\"https:\/\/cryptoslate.com\/products\/grayscale-ethereum-trust\/\">Grayscale's Ethereum fund,<\/a> despite the broader market situation.<\/p>\n<p>Notably, these positions are new and show how the crypto ETFs continue to attract institutional interest regardless of their performance.<\/p>\n<h2>The BlackRock phenomenon<\/h2>\n<p>Nowhere is this disconnect between capital flows and asset performance more visible than in the books of the <a href=\"https:\/\/cryptoslate.com\/products\/ishares-bitcoin-trust\/\">BlackRock iShares Bitcoin Trust (IBIT)<\/a>.<\/p>\n<p>Last year, the fund achieved something incredibly rare in the asset management business as it <a href=\"https:\/\/cryptoslate.com\/ibit-approaches-100b-in-aum-as-blackrocks-most-profitable-etf\/\">attracted billions of dollars in fresh inflows<\/a> while losing money for its clients.<\/p>\n<p>IBIT ended 2025 as the sixth-most popular ETF in the United States by net inflows, according to Bloomberg Intelligence data. It raised $25.4 billion in fresh cash, beating established giants like the Invesco QQQ Trust and the SPDR Gold Trust (GLD).<\/p>\n<p>This influx occurred despite IBIT posting a 10% loss. By contrast, <a href=\"https:\/\/cryptoslate.com\/bitcoin-is-following-a-discreet-lag-pattern-behind-gold-that-puts-a-130k-target-in-immediate-play\/\">gold rallied nearly 65% in 2025,<\/a> buoyed by central bank purchases and geopolitical anxiety.<\/p>\n<p>Industry stakeholders noted that the fund's performance demonstrated the asset managers' conviction in Bitcoin.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/ibit-approaches-100b-in-aum-as-blackrocks-most-profitable-etf\/\" class=\"cs-article-embed__link\">\n                    <div class=\"cs-article-embed__media\">\n                <img src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/10\/blackrock-ibit-1024x538.jpg\" alt=\"IBIT approaches $100B in AUM as BlackRock\u2019s most profitable ETF\" loading=\"lazy\" decoding=\"async\">\n            <\/div>\n                <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">IBIT approaches $100B in AUM as BlackRock\u2019s most profitable ETF<\/h3>\n                            <div class=\"cs-article-embed__summary\">IBIT now generates more revenue for BlackRock than funds that have been operating for decades.<\/div>\n                                        <div class=\"cs-article-embed__meta\">\n                                            <span class=\"cs-article-embed__meta-item\">Oct 6, 2025<\/span>\n                                                                <span class=\"cs-article-embed__meta-divider\">&middot;<\/span>\n                                                                <span class=\"cs-article-embed__meta-item\">Gino Matos<\/span>\n                                    <\/div>\n                    <\/div>\n    <\/a>\n<\/div>\n\n<p><a href=\"https:\/\/cryptoslate.com\/people\/matthew-hougan\/\">Matt Hougan,<\/a> the Chief Investment Officer at <a href=\"https:\/\/cryptoslate.com\/companies\/bitwise\/\">Bitwise<\/a>, pointed out that 99% of advisors who owned crypto in 2025 plan to increase or maintain their exposure this year.<\/p>\n\n<figure class=\"cs-person-quote\">\n    <blockquote class=\"cs-person-quote__quote\">\n        <p>People have wondered what advisors would do if crypto hit a patch of volatility. We have our answer: They're planning to buy more.<\/p>\n    <\/blockquote>\n    <figcaption class=\"cs-person-quote__footer\">\n        <div class=\"cs-person-quote__identity\">\n                                                <a href=\"https:\/\/cryptoslate.com\/people\/matthew-hougan\/\" class=\"cs-person-quote__media-link\" aria-label=\"View profile for Matthew Hougan\">\n                                <div class=\"cs-person-quote__media\">\n                                            <img class=\"cs-person-quote__photo\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/10\/matthew-hougan.jpg\" alt=\"Matthew Hougan\" loading=\"lazy\" decoding=\"async\">\n                                                                                            <img class=\"cs-person-quote__company-logo\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/09\/bitwise-logo-1.jpg\" alt=\"Bitwise logo\" loading=\"lazy\" decoding=\"async\">\n                                                            <\/div>\n                                    <\/a>\n                                        <div class=\"cs-person-quote__meta\">\n                                    <a href=\"https:\/\/cryptoslate.com\/people\/matthew-hougan\/\" class=\"cs-person-quote__name\">Matthew Hougan<\/a>\n                                                    <span class=\"cs-person-quote__title\">\n                                                    <span class=\"cs-person-quote__role\">Chief Investment Officer<\/span>\n                                                                                                            <span class=\"cs-person-quote__separator\">&bull;<\/span>\n                                                        <span class=\"cs-person-quote__company\">Bitwise<\/span>\n                                            <\/span>\n                            <\/div>\n        <\/div>\n                    <div class=\"cs-person-quote__actions\">\n                                    <a href=\"https:\/\/x.com\/intent\/tweet?text=%22People%20have%20wondered%20what%20advisors%20would%20do%20if%20crypto%20hit%20a%20patch%20of%20volatility.%20We%20have%20our%20answer%3A%20They%26%238217%3Bre%20planning%20to%20buy%20more.%22%20-%20Matthew%20Hougan&#038;via=cryptoslate&#038;url=https%3A%2F%2Fcryptoslate.com%2Fwhy-wall-street-refuses-to-sell-bitcoin-and-actually-bought-way-more-even-while-losing-25-of-its-value%2F\" class=\"cs-person-quote__button cs-person-quote__button--share\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"Share on X\" aria-label=\"Share this quote on X\">Share on <i class=\"fa-brands fa-x-twitter\" aria-hidden=\"true\"><\/i><\/a>\n                                                    <a href=\"https:\/\/cryptoslate.com\/people\/matthew-hougan\/\" class=\"cs-person-quote__button\">View Profile <i class=\"fa-regular fa-square-arrow-up-right\" aria-hidden=\"true\"><\/i><\/a>\n                            <\/div>\n            <\/figcaption>\n<\/figure>\n\n<h2>Adoption or arbitrage?<\/h2>\n<p>However, there is an interesting caveat to the &#8220;institutional adoption&#8221; narrative.<\/p>\n<p>Spot Bitcoin ETFs exist at the crossroads of long-term investment and short-term arbitrage. A rising share count in a 13F filing looks like bullish conviction, but it can often mask a market-neutral hedge.<\/p>\n<p>On the surface, the adoption story holds water. State Street <a href=\"https:\/\/www.ssga.com\/us\/en\/institutional\/insights\/why-bitcoin-institutional-demand-is-on-the-rise\">research<\/a> from December estimates the <a href=\"https:\/\/cryptoslate.com\/bitcoins-boring-sideways-era-begins-with-over-1b-etf-outflow\/\">US Bitcoin ETF market<\/a> at $103 billion, with institutions owning nearly a quarter of that float. Their data suggests that 60% of institutional investors prefer the regulatory safety of an ETF wrapper over holding physical coins.<\/p>\n<p>However, the &#8220;long ETF&#8221; positions reported in 13F filings do not tell the whole story.<\/p>\n<p>These forms require managers to disclose long positions in US equities but do not require disclosure of short positions. Notably, this effectively hides the other side of the trade.<\/p>\n<p>As the CME has <a href=\"https:\/\/www.cmegroup.com\/openmarkets\/equity-index\/2025\/Spot-ETFs-Give-Rise-to-Crypto-Basis-Trading\">noted<\/a>, hedge funds frequently use <a href=\"https:\/\/cryptoslate.com\/bitcoins-2025-review-the-violent-transformation-hidden-behind-the-years-deceptively-flat-price-chart\/\">spot ETFs to execute basis trades<\/a>. They buy the ETF (which shows up in the filing) and simultaneously short Bitcoin futures (which does not).<\/p>\n<p>This allows them to capture the spread between the spot and futures price without taking any directional risk on Bitcoin itself.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/bitcoins-2025-review-the-violent-transformation-hidden-behind-the-years-deceptively-flat-price-chart\/\" class=\"cs-article-embed__link\">\n                    <div class=\"cs-article-embed__media\">\n                <img src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/bitcoin-2025-events--1024x538.jpg\" alt=\"Bitcoin\u2019s 2025 review: The &#8220;violent transformation&#8221; hidden behind the year's deceptively flat price chart\" loading=\"lazy\" decoding=\"async\">\n            <\/div>\n                <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Bitcoin\u2019s 2025 review: The &#8220;violent transformation&#8221; hidden behind the year's deceptively flat price chart<\/h3>\n                            <div class=\"cs-article-embed__summary\">Bitcoin&#039;s tumultuous year saw regulatory embrace, miner crises, and Wall Street&#039;s long-awaited entry into the crypto realm.<\/div>\n                                        <div class=\"cs-article-embed__meta\">\n                                            <span class=\"cs-article-embed__meta-item\">Dec 25, 2025<\/span>\n                                                                <span class=\"cs-article-embed__meta-divider\">&middot;<\/span>\n                                                                <span class=\"cs-article-embed__meta-item\">Oluwapelumi Adejumo<\/span>\n                                    <\/div>\n                    <\/div>\n    <\/a>\n<\/div>\n\n<p>This distinction is critical for forecasting the market's next move. If the fourth quarter\u2019s accumulation was driven by genuine allocators building &#8220;portfolio sleeves,&#8221; that capital is likely sticky.<\/p>\n<p>However, if it was driven by hedge fund capitalizing on spreads, that capital is mercenary. It could reverse quickly if volatility spikes or if the basis trade becomes less profitable.<\/p>\n<p>Regardless of the motive, the result is the same. In a quarter where Bitcoin lost nearly a quarter of its value, Wall Street ended up owning more of it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Institutional investment managers increased their allocations to US spot Bitcoin exchange-traded funds (ETFs) during the fourth quarter of 2025, despite the asset suffering\u00a0a sharp price correction that shaved nearly a quarter off its market value. The divergence between rising share counts and falling asset values presents a complex picture of institutional behavior during a period [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":514974,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,78665,77968,77911,79312,79849],"tags":[77954,77616],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bitcoin ETFs see upswing despite steep market drawdown in 2025 Q4<\/title>\n<meta name=\"description\" content=\"Institutional investors seized the Bitcoin dip to boost ETF holdings, revealing enduring confidence amid market turbulence.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/why-wall-street-refuses-to-sell-bitcoin-and-actually-bought-way-more-even-while-losing-25-of-its-value\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Wall Street refuses to sell Bitcoin - and actually bought way more - even while losing 25% of its value\" \/>\n<meta property=\"og:description\" content=\"Institutional investors seized the Bitcoin dip to boost ETF holdings, revealing enduring confidence amid market turbulence.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/why-wall-street-refuses-to-sell-bitcoin-and-actually-bought-way-more-even-while-losing-25-of-its-value\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2026-01-15T21:05:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-15T15:22:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/01\/bitcoin-institutions-.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/why-wall-street-refuses-to-sell-bitcoin-and-actually-bought-way-more-even-while-losing-25-of-its-value\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/why-wall-street-refuses-to-sell-bitcoin-and-actually-bought-way-more-even-while-losing-25-of-its-value\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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