Q2 Wall Street Crypto Rebalancing: BTC Holdings Defy the Trend with a 7.5% Increase, While ETH Exposure Takes the Lead Across the Board

In Q2 2025, U.S. institutional investors increased their Bitcoin holdings by 7.5% quarter-over-quarter to roughly 536,000 BTC, even as Bitcoin prices fell 14.2% and total ETF holdings declined 6.6% to about 1.211 million BTC. Ethereum allocation growth significantly outpaced Bitcoin, emerging as a clear buy-side target, while institutions used derivatives such as options to hedge risk. The divergence of 'institutions adding, ETFs reducing' signals deepening institutionalization and growing complexity in crypto asset allocation.