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    3. Q2 Wall Street Institutions' Crypto Holdings: Most Institutions Increase Positions Against the Trend, ETH Exposure Outperforms BTC

    Q2 Wall Street Institutions' Crypto Holdings: Most Institutions Increase Positions Against the Trend, ETH Exposure Outperforms BTC

    By: www.chaincatcher.com|2026/08/19 03:18:59
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    Author: Zhou, ChainCatcher

    August 14 is the statutory deadline for U.S. SEC to require institutional investors to submit Q2 13F forms. After the concentrated disclosure of documents, Wall Street's crypto holdings are once again brought to light.

    This quarter's institutional actions show a stark contrast to the price trends of cryptocurrencies. Bitcoin's price has dropped by about 14.2%, while the reported crypto holdings by institutions have actually increased.

    According to Bitcoin Strategy's calculations based on 13F data, institutional Bitcoin holdings increased from approximately 498,000 to about 536,000, a quarter-on-quarter growth of 7.5%. In contrast, the total holdings of ETFs decreased from about 1.297 million to approximately 1.211 million during the same period.

    According to SoSoValue data, U.S. spot Bitcoin ETFs experienced continuous net redemptions in Q2, with net outflows of approximately $2.4 billion and $4.5 billion in May and June, respectively, with June marking the worst monthly record since the ETF's inception. Ethereum ETFs also saw a cumulative net outflow of about $700 million during the same period.

    At the same time, holdings are becoming more concentrated among leading institutions. The number of institutions reporting Bitcoin holdings decreased from about 2,000 to approximately 1,900. According to Bloomberg data, as of August 13, the number of institutional holders of the IBIT product reached about 1,500, with net assets of approximately $47.35 billion.

    Ethereum Growth at Banks Outpaces Bitcoin

    Previously, ChainCatcher noted in the Q1 holdings review that institutional interest in Ethereum was increasing, with Jane Street, Wells Fargo, and JPMorgan adding Ethereum ETFs during the outflow phase. In Q2, this trend was confirmed on the banking side.

    According to DWF Labs' calculations, based on the corresponding number of crypto assets, Morgan Stanley's Bitcoin exposure grew by 3.7% quarter-on-quarter, while Ethereum exposure grew by 18.6%. JPMorgan's Bitcoin exposure increased by 12.2%, and Ethereum exposure surged by 67.3%. Both banks' Ethereum growth rates significantly outpaced Bitcoin.

    On an individual level, the figures are even more striking. Morgan Stanley's ETHA increased by approximately 202% to 4.6 million shares, JPMorgan's ETHA rose by about 338% to nearly 1.17 million shares, and Bank of America's ETHA surged from about 67,500 shares to approximately 1.98 million shares, about 29 times the previous amount.

    However, in reality, the overall Ethereum spot ETF saw net outflows in Q2. SoSoValue data shows that in April, there was still a net inflow of about $356 million, but in May and June, there were net outflows of approximately $541 million and $529 million, respectively, totaling about $714 million in net outflows for Q2.

    Jane Street Rebuys, Hedge Funds Shift to Options

    Last quarter, Jane Street cut its IBIT holdings by about 71%, leading the market to speculate that it was bearish on Bitcoin. This quarter, it reversed course and added back approximately 24.9 million shares of IBIT, a quarter-on-quarter increase of about 324%, making it one of the largest buyers of the season. Currently, its spot Bitcoin ETF exposure is about $990 million, with approximately $828 million in IBIT.

    As an authorized participant and market maker, its end-of-quarter inventory is related to subscriptions, redemptions, and hedging; a significant increase in spot holdings does not necessarily indicate directional bets.

    It is worth noting that 13F only reports end-of-quarter spot long positions. If options were included, the profiles of several institutions would also reverse.

    Global macro hedge fund Brevan Howard reduced its spot IBIT holdings from 24.3 million shares to 7.21 million shares in Q2, a decrease of about 70.4%. However, it simultaneously held corresponding call options for about 7.23 million shares of IBIT and put options for 5.27 million shares.

    Graham Capital reduced its spot IBIT holdings from about 926,000 shares to 259,000 shares, a decrease of about 72%, yet it holds corresponding put options for about 1.74 million shares of IBIT, with a reported value of approximately $57.94 million. Multi-strategy giant Millennium reduced its spot IBIT holdings from about 19.29 million shares to 9.69 million shares, a decrease of about 49.8%.

    In contrast, UBS's directly held IBIT only increased by about 12% to 407,890 shares, but its corresponding call options surged from 80,000 shares to approximately 1.95 million shares, a quarterly increase of over 24 times, while its put options decreased by about 53% during the same period.

    In comparison, the actions of Paul Tudor Jones' fund, Tudor, seem contradictory; it increased its spot IBIT by nearly 20% to 688,500 shares, ending nearly a year of reductions, while simultaneously cutting its call options linked to IBIT by about 85%, from 998,000 shares to approximately 148,000 shares.

    Institutions Diverge on Crypto Stocks

    In the previous article, we mentioned that crypto-related stocks are becoming an unavoidable allocation option for institutions. Among these, Strategy is the most representative.

    In Q2, Strategy broke the myth of "never selling coins" by selling 32 Bitcoin preferred shares for dividends for the first time at the end of May, and on June 29, the board authorized a Bitcoin monetization framework of up to $1.25 billion.

    The 13F deadline was June 30, but the more significant sell-off occurred after the quarter, as the narrative around Bitcoin proxy assets changed.

    Documents show that Bank of America reduced its holdings in Strategy from about 3.97 million shares to approximately 1.18 million shares, cutting about 70%. Renaissance Technologies reversed and bought 422,900 shares, increasing its total holdings to 2.55 million shares, valued at about $242.3 million. BlackRock also increased its MSTR holdings to about 19.39 million shares, valued at approximately $1.69 billion. However, as the largest index issuer in the market, BlackRock's increase may be more about passive allocation following the index.

    Renaissance Technologies purchased an additional 422,881 shares of Strategy, bringing its total holdings to 2.55 million shares, valued at $242.3 million, an increase of 20%. The Royal Bank of Canada increased its holdings by 46,000 shares of Strategy, currently holding about 385,000 shares, valued at approximately $37.2 million, an increase of 13.5% compared to before.

    Additionally, Circle is one of the few related targets that are viewed positively. Morgan Stanley significantly increased its holdings from about 1.46 million shares to approximately 8.32 million shares, while ARK also slightly increased its holdings by about 1% to 4.56 million shares. For Coinbase, the two institutions took completely opposite actions; Morgan Stanley reduced its holdings by about 550,000 shares, while ARK increased its holdings by about 5.8% to 2.51 million shares, while also cutting Robinhood by about 12.8%.

    It is worth mentioning that ARK's weight in Circle dropped from about 3.34% in Q1 to 1.85%, but the number of shares actually increased slightly; the decline in weight is mainly due to the dilution caused by the new position in SpaceX, which enlarged the portfolio.

    Furthermore, after significantly increasing its holdings in Circle in Q2, Morgan Stanley cut its target price for CRCL from $106 to $38 in early August, believing that the contraction in USDC's scale exposed the sensitivity of Circle's reserve income, indicating that the income structure will shift towards lower-margin trading income.

    New Money Enters, Old Money Stays Put

    In Q2, Santander Bank of Spain disclosed its Bitcoin and Ethereum ETF holdings for the first time, although the position accounts for a small proportion of its over $10 billion U.S. stock portfolio. UBS's crypto exposure has also been gradually increasing, with this quarter adding a position of about $1.5 million in the mining company American Bitcoin.

    Morgan Stanley also established new positions in Grayscale's Solana Staking ETF and Fidelity's Solana Fund in Q2, with market values of approximately $4.25 million and $2.26 million, respectively; JPMorgan also established a new Bitwise Solana Staking ETF and repurchased XRP, which it had previously liquidated in Q1, through Bitwise and Grayscale's XRP funds.

    Additionally, the investment advisory firm Edelman Financial Engines disclosed a holding of approximately $34 million in spot Bitcoin ETF positions, primarily allocated to BlackRock's iShares Bitcoin Trust (IBIT) and Grayscale-related products. Although this position remains small in its overall investment portfolio, it has surpassed its holding of about $25 million in Amazon.

    Abu Dhabi's Mubadala and the Abu Dhabi Investment Authority maintained approximately 14.7219 million shares and 8.2187 million shares of IBIT, respectively, totaling about $764 million, pausing the previous quarters' accumulation pace in Q2.

    Harvard University's endowment fund held approximately 3.0446 million shares of IBIT, valued at about $101.4 million, unchanged from the end of Q1, ending two consecutive quarters of reductions. Its holdings in gold products, iShares Gold Trust and SPDR Gold Trust, totaled approximately $171.2 million, surpassing Bitcoin.

    Signals of Institutional Crypto Allocation Changes

    Looking at this quarter's institutional actions as a whole, several directional signals are taking shape.

    First, ETF fund flows and institutional behaviors are decoupling, deepening the institutionalization of crypto assets.

    Second, the divergence among institutions regarding crypto-related stock targets is growing, especially after Strategy began selling coins.

    Additionally, Ethereum has become a clear buy for institutions, with fund flows in Q3 also shifting accordingly.

    According to SoSoValue data, Ethereum ETFs saw net inflows of approximately $365 million in July and about $243 million so far in August, totaling over $600 million in two months; the price of ETH has rebounded from about $1,570 at the end of June to around $1,900 currently, an increase of about 20%.

    Even the Ethereum treasury company BitMine is also strengthening, with its stock price rising from about $13.3 at the end of June to nearly $19, an increase of about 40%.

    -- Price

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    This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.

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    Contents

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    Latest articles

    08/19/2026

    Q2 Wall Street Institutions' Crypto Holdings: Most Institutions Increase Positions Against the Trend, ETH Exposure Outperforms BTC

    In Q2, ETF fund flows and institutional behaviors are decoupling, deepening the institutionalization of crypto assets; at the same time, the divergence among institutions regarding crypto-related stock targets is also increasing.
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