Author: Blockchain Knight
The crypto market experienced a downturn followed by a rebound in the first quarter of 2026. With the release of the 13F filings in mid-May, a highly differentiated institutional landscape emerged.
On one hand, sovereign wealth funds and bank-affiliated capital are increasing their holdings against the trend, while on the other hand, established endowment funds are decisively reducing risks. Spot ETFs have completely dragged Bitcoin into the tactical game of global capital.
The most prominent signal of increased holdings came from Abu Dhabi's sovereign wealth fund, Mubadala . In the first quarter, it increased its holdings in BlackRock's iShares Bitcoin Trust from 12.7 million shares to 14.72 million shares, worth approximately $566 million, continuing its quarterly increase trend since the end of 2024.
JPMorgan Chase followed suit, with its IBIT exposure surging 174% quarter-over-quarter. Royal Bank of Canada, Scotiabank, and Barclays, among other institutions, also increased their holdings of Bitcoin ETFs, but unlike previous quarters, they generally used both call and put options to manage their positions.
This indicates that even when adding to their positions, professional institutions are proactively building asymmetric protection to cope with potential tail shocks.
In stark contrast to this trend is Harvard University's endowment fund . This fund was once one of the largest academic investors in US cryptocurrency ETFs, holding nearly $443 million in IBIT at its peak.
However, after reducing its holdings by 21% in the fourth quarter of 2025, it further reduced its holdings by 43% in the first quarter of this year, leaving it with only 3.04 million IBIT shares at the end of the period, equivalent to $117 million. At the same time, it completely liquidated its BlackRock Ethereum Spot ETF ETHA, with a liquidation amount of approximately $86.8 million.
The destination of the funds after the reallocation is also clear: new traditional assets such as TSMC, Microsoft, Alphabet, and SPDR Gold Trust.
Whether characterized as portfolio rebalancing, tactical risk mitigation, or defense against macroeconomic uncertainties, such a large-scale withdrawal has still drawn market attention.
Of course, the Ivy League schools did not move in unison; Brown University and Dartmouth College remained inactive, holding onto their respective IBIT positions.
Dartmouth made a more subtle adjustment, moving its Ethereum exposure from the Grayscale Ethereum Mini Trust to the Grayscale Ethereum Staking ETF and creating a new position in the Bitwise Solana Staking ETF, holding 304,800 shares worth $3.67 million.
This proactive capture of staking yields indicates that a number of institutions are no longer satisfied with a single price exposure and have begun to explore the enhanced returns that on-chain interest may bring.
The divergence extends beyond universities. Hedge fund Jane Street significantly reduced its IBIT position by 71% and its Fidelity Bitcoin ETF (FBTC) position by 60% during the same period, locking in gains; while Wells Fargo conversely increased its Ethereum holdings.
It can be seen that institutions have developed relatively effective strategies for dealing with the crypto market. Through buying and selling, hedging, and portfolio rebalancing, these conventional tactics from the traditional stock market are being fully replicated in the crypto field as spot ETFs become more deeply integrated.
The Q2 13F report will be the next litmus test, potentially answering whether Harvard's withdrawal is an exception or a harbinger of a broader retreat in endowment funds. Given the current uncertainties in the global macro market, the crypto market remains fraught with challenges.
