Bitcoin’s drawdown hasn’t shaken institutional investors yet, says CoinShares

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Bitcoin’s drawdown hasn’t shaken institutional investors yet, says CoinShares Professional investors trimmed exposure but largely held firm during BTC’s recent slump, while long-term allocators quietly added positions, the crypto asset manager said. By Will Canny , AI Boost | Edited by Stephen Alpher Mar 5, 2026, 1:50 p.m. Make us preferred on Google Bitcoin’s drawdown hasn’t shaken institutional investors yet, says CoinShares. (Unsplash, modified by CoinDesk) What to know : CoinShares said advisors and hedge funds reduced BTC exposure modestly, but institutional ownership overall grew. Endowments, pensions and sovereign wealth funds continued adding bitcoin exposure during the downturn. Whether ETF-era investors behave like earlier long-term holders remains an open question, the report said. The first phase of bitcoin’s BTC $ 72,504.45 recent drawdown has not triggered panic among institutional investors, according to crypto asset management firm CoinShares. Professional allocators reduced exposure modestly but largely maintained their positions compared with last year. Advisors trimmed holdings while hedge funds scaled back alongside the broader leverage unwind and shifting opportunities in other markets, the crypto investment manager said in a Tuesday report. Longer-duration investors kept accumulating. "Endowments, pensions, and sovereigns continued to build quietly," wrote analyst Matt Kimmell. Bitcoin has struggled to regain momentum since hitting a record high near $125,000 in early October. The world's largest cryptocurrency was trading around $72,370 at publication time. Crypto markets have delivered muted performance in recent months as a mix of macro and market-specific pressures weighed on prices. Higher interest rates and a stronger dollar have dampened appetite for risk assets, while leveraged positions built earlier in the rally have been unwound. At the same time, profit-taking from long-term bitcoin holders and uneven flows into spot exchange-traded funds (ETFs) have limited momentum, leaving the sector struggling to regain a sustained upward trend. Despite bitcoin falling about 23% during the period, global bitcoin ETF flows remained positive, suggesting the sell-off in the fourth quarter was driven more by long-time holders taking profits than by new institutional money exiting the market, Kimmell said. Historically, crypto bear markets have redistributed supply from short-term traders to long-term holders. According to Kimmell, the emergence of ETFs now offers a new way to observe whether institutional capital follows the same pattern. So far, the data points in that direction. A roughly 25% quarterly drawdown did not trigger broad institutional capitulation, the report said, with most declines in assets under management reflecting price moves rather than large investor outflows. Still, CoinShares cautioned that the sample size remains small. The firm said the real test may appear in upcoming regulatory filings, which will capture institutional behavior during sharper moves, including bitcoin’s slide toward $60,000 and a single-day 17% drop. Bitcoin and the broader crypto market moved higher this week, rebounding after weeks of choppy trading. The rally was driven in part by renewed risk appetite across markets and steady demand for bitcoin ETFs , helping the largest cryptocurrency regain momentum and lift major altcoins alongside it. Traders also pointed to short covering and positioning resets following the recent sell-off as factors behind the move. Read more: CEO of crypto investment firm Keyrock says bitcoin is undervalued, entering ‘transition year’ Bitcoin News ETFs Institutional Adoption CoinShares AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You Pudgy Penguins: Challenging the Pokemon and Disney Legacy in the Global IP Race By CoinDesk Research Feb 27, 2026 Commissioned by Pudgy Penguins CoinDesk Research looks into how Pudgy Penguins disrupts traditional toys market via a phygital model. With 2M+ units sold, they scale via global partnerships and events. What to know : Disrupting a Stagnant Market : Pudgy Penguins is utilizing a "Negative CAC" model to challenge the traditional $31.7B licensed toy industry by treating physical merchandise as a profitable user acquisition tool rather than just a final product. View Full Report More For You Bitcoin holds above $72,000 as crypto market pauses after breakout By Oliver Knight , Omkar Godbole | Edited by Sheldon Reback 2 hours ago Bitcoin and ether edged higher as traders assessed macro risks, derivatives positioning and whether bitcoin can sustain a push toward $80,000. What to know : Bitcoin traded around $72,700, holding above $70,000, but failing to extend the rally toward the $80,000 level analysts had forecast. Equities rose on reports Iran reached out to the U.S. While the Dollar Index slipped, it remains up 3.5% since late January. The CoinDesk 5 and CoinDesk 10 indices gained about 3% over 24 hours, while DeFi and computing tokens barely moved. MANTRA surged after its token migration and redenomination. Read full story Latest Crypto News Crypto-friendly fintech giant Revolut files for U.S. banking license 42 minutes ago NYSE-owner forges strategic partnership with OKX exchange for tokenized stocks, crypto futures 1 hour ago Bitcoin takes aim at $74,000. Surprisingly, the dollar's rallying too. 1 hour ago Bitcoin holds above $72,000 as crypto market pauses after breakout 2 hours ago Trump-backed American Bitcoin board members scoop up stock following earnings 2 hours ago Andreessen Horowitz crypto arm said to seek $2 billion for fifth fund: Fortune 2 hours ago Top Stories Bitcoin traders, alert: The rally is nearing a two-year 'make or break' price zone 6 hours ago Sky token jumps 10% after governance vote causes bullish tilt in market dynamics 8 hours ago IREN to expand processing capacity by 50%, prepares at-the-market offering 3 hours ago Crypto campaign PAC Fairshake marks first wins in 2026 U.S. congressional primaries 20 hours ago ZeroHash applies for national trust bank charter to expand regulated stablecoin services 3 hours ago In this article BTC BTC $ 72,504.45 ◢ 1.44 %