Bitcoin Market Volatility: Institutions vs Retail Investors

Bitcoin's price has been fluctuating significantly over the past few months, reaching its fourth consecutive month of decline. This downturn has sparked curiosity among investors about who is responsible for the drop in value.

The iShares Bitcoin Trust ETF (IBIT) and other spot bitcoin products have seen significant sales from hedge funds, with some notable examples including Brevan Howard and DE Shaw. These institutions have reduced their positions in these assets, which has contributed to the overall decline in price.

However, it's worth noting that universities have maintained their positions in Bitcoin. Harvard University, for instance, still holds IBIT as its largest position, making up over 12% of its overall portfolio. Brown and Emory universities also hold significant amounts of Bitcoin through various investment vehicles.

The differing strategies between institutional and retail investors are likely contributing to the selloffs in the market. While some institutions have been selling their positions, others have maintained or even increased their holdings.