Bitcoin treasury trade ‘breaking’ and fund holdings drop 10%: Analysis

Bitcoin (BTC) institutional investment vehicles have shed 10% of their BTC holdings since May as analysis warns of a “breaking” sector.Key points:Bitcoin institutional funds see a blanket 10% reduction in holdings over three months.Analysis says that the Bitcoin treasury model is “breaking” as company valuations fall below net asset value.Coinbase premium has been negative for a record 93 days. Fund exposure drops as Bitcoin treasury companies face squeeze Data from onchain analytics platform CryptoQuant shows that combined institutional BTC exposure, which includes trusts, exchange-traded funds (ETFs) and closed-end funds, has fallen from 1.33 million to 1.20 million BTC over three months.Bitcoin fund holdings. Source: CryptoQuantThe drawdown comes as another major Bitcoin institutional investment vehicle, corporate treasuries, faces upheaval. Business intelligence software company Strategy, which holds the largest Bitcoin treasury of any public corporation, sold 1,638 BTC last week. “Bitcoin treasury companies once amplified demand through a reflexive financing loop. Their shares traded above the value of their Bitcoin holdings, allowing them to issue equity or debt, buy more Bit...