Institutional selling pressures crypto ETFs
The guest argued that 13F data reveals net selling of crypto ETFs by institutional players, particularly hedge funds and brokerages, signaling a cooling of the basis trade and institutional allocations.
The argument
The guest noted that 13F filer ownership of crypto ETFs dropped from 26-27% in March to 24% by the end of 2025. This net selling was led by hedge funds and brokerages, and the guest suspects this downward trend in institutional ownership will continue in upcoming data releases due to ongoing price weakness and outflows.
The thesis, stress-tested
✓ What validates it
- ✓Next 13F filing cycle confirms a further drop in institutional ownership below 24%
- ✓Continued daily net outflows from major spot crypto ETFs
▸ Risks discussed
- ▸13F filings only show the long side of trades, meaning some sellers may be hedging or net short already
- ▸Some individual institutions continue to buy or add to their allocations despite the aggregate net selling
Hear it yourself
"That also contributed to hedge funds being huge sellers. So they're the biggest one and two holders on the 13 f report. As of March, we knew about 26, 27% of the holders were filers with the 13 f. That number is now dropped as of the end of twenty twenty five to 24%."
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