Institutions have developed relatively effective strategies for the cryptocurrency market. Through buying, hedging, and reallocating, these conventional tactics from the traditional stock world are being completely replicated in the crypto space as spot ETFs become deeply embedded.

Written by: Blockchain Knight

In the first quarter of 2026, the cryptocurrency market initially repressed then recovered. In mid-May, the 13F holding reports were announced as expected, presenting a highly differentiated picture of institutions.

On one side, sovereign wealth funds and bank-affiliated capital are increasing their holdings against the trend, while on the other side, traditional endowment funds are cutting their risks decisively. Spot ETFs have completely dragged Bitcoin into the tactical battlefield of global capital.

The most striking signal of increased holdings comes from the Abu Dhabi sovereign wealth fund Mubadala. In the first quarter, it raised its stake in BlackRock's iShares Bitcoin Trust from 12.7 million shares to 14.72 million shares, with a market value of approximately $566 million, continuing a trend of adding every quarter since the end of 2024.

JPMorgan closely followed suit, with a quarter-on-quarter increase of 174% in its IBIT exposure. The Royal Bank of Canada, Scotiabank, and Barclays are also increasing their Bitcoin ETF holdings, but unlike previous quarters, they are generally using both call and put options to manage their positions.

This indicates that even while increasing holdings, professional institutions are actively building asymmetric protection to cope with possible tail risks.

In stark contrast to the aforementioned trend is Harvard University's endowment fund. This fund was once one of the largest institutional investors in U.S. crypto ETFs, holding nearly $443 million in IBIT at its peak.

However, following a 21% reduction in the fourth quarter of 2025, it further cut its position by 43% in the first quarter of this year, leaving only 3.04 million shares of IBIT, equivalent to $117 million. It also completely exited BlackRock's Ethereum spot ETF ETHA, liquidating an amount of about $86.8 million.

The direction of the reallocated funds is also clear, with new investments in traditional assets such as TSMC, Microsoft, Alphabet, and the SPDR Gold Trust.

Whether characterized as portfolio rebalancing, tactical risk reduction, or defense against macroeconomic uncertainties, such a substantial withdrawal still draws attention in the market.

Of course, the Ivy League does not march in lockstep; Brown University and Dartmouth College maintain their respective IBIT positions without change.

However, Dartmouth has made finer adjustments, moving its Ethereum exposure from the Grayscale Ethereum Mini Trust to the Grayscale Ethereum Staking ETF, and newly building a position in the Bitwise Solana Staking ETF, holding 304,800 shares valued at $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 are beginning to explore potential enhanced returns from on-chain income.

Divisions extend beyond universities. Hedge fund Jane Street significantly reduced its IBIT position by 71% and its Fidelity Bitcoin ETF (FBTC) position by 60%, locking in phased gains; while Wells Fargo increased its Ethereum position.

It is evident that institutions currently have relatively effective strategies for the cryptocurrency market. Through buying, hedging, and reallocating, these conventional tactics from the traditional stock world are being completely replicated in the crypto space as spot ETFs become deeply embedded.

The second quarter's 13F report will become the next test stone. It may largely answer whether Harvard's withdrawal is an exception or a precursor to a broader retreat by endowment funds. In the face of current global macroeconomic uncertainties, the cryptocurrency market remains full of challenges.