US Bitcoin ETF Market Shows Mixed Signals as Institutional Demand Cools in 2026
Major institutional players have trimmed their Bitcoin ETF holdings this year, even as Morgan Stanley's newly launched product draws strong early inflows.
Institutional appetite for US spot Bitcoin ETFs is showing signs of softening in 2026, with notable players scaling back their positions. Market maker Jane Street cut its Bitcoin ETF holdings by roughly 70% in Q1, while Goldman Sachs trimmed its exposure by 10% [1].
BlackRock's IBIT remains the dominant force in the space, accounting for the bulk of the market's net inflows with $2.7 billion gathered so far this year - though that pace falls well short of the $25 billion it attracted throughout 2025 [1]. Most competing products have seen net outflows during the same period.
A bright spot has been Morgan Stanley's Bitcoin Trust ETF (MSBT), which launched on April 8 and has already pulled in $264 million in net inflows, surpassing the totals accumulated by both Invesco and WisdomTree since their January 2024 debuts [1]. MSBT's market-low management fee of 0.14% is seen as a key competitive advantage.
Meanwhile, the anticipated Bitcoin ETF backed by Donald Trump's Truth Social media company appears to have been shelved, after sponsor Yorkville America withdrew its filings for multiple Trump-related crypto products. Bloomberg ETF analyst James Seyffart suggested the highly competitive fee environment may have played a role in that decision [1].
Spot Ether ETFs and newly launched altcoin products have failed to gain traction, recording net outflows and underwhelming demand so far this year [1].
Sources
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