Bitcoin fell 14.2% in the second quarter of 2026, but institutional holdings of U.S. spot Bitcoin ETFs rose 7.5%, from 498,389 BTC to 535,723 BTC, according to an analysis of 13F filings compiled in the Bitcoin Strategy Institutional Adoption Report for Q2 2026. The filings, released in mid-August, reflect portfolio positions at the end of June. Total Bitcoin ETF holdings declined 6.6% to 1,211,322 BTC, implying that retail investors and smaller allocators reduced their positions while institutions increased theirs. Institutional ownership consequently reached a record 44.2%, up from 38.4% at the end of the first quarter. Morgan Stanley increased its iShares Bitcoin Trust holdings by 23% to approximately 16.5 million shares, while JPMorgan raised its position from 8.3 million shares to 10.4 million, an increase of roughly 25%. Millennium and Jane Street also increased their Bitcoin ETF activity. The number of institutions disclosing Bitcoin exposure through U.S. SEC 13F filings declined from about 2,000 to around 1,900. Banks and quant funds increased allocations, while sovereign wealth funds and endowments mostly maintained existing levels. Hedge funds' actual Bitcoin exposure remains difficult to determine because options positions are included in the filings. The record institutional ownership share provides a benchmark for future quarters, although Q3 positioning will not be visible until filings are released in mid-November.