Galaxy Research: hedge funds trimmed about 68,000 BTC of spot ETF holdings
Galaxy Research, using 13F filings, finds nine hedge funds cut spot Bitcoin ETF positions by roughly 68,000 BTC from late September 2025 to June 2026.
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what happened
According to Crypto Briefing, citing Galaxy Research, the investors who sold Bitcoin ETF shares during the recent downturn were hedge funds rather than retail traders. Nine such funds reduced their spot Bitcoin ETF holdings by about 68,000 BTC from late September 2025 to June 2026. Galaxy linked the exits to the spread between ETF returns and Treasury bill yields, not to a loss of confidence in the asset. Its analysis draws on 13F filings, the quarterly reports in which large US asset managers disclose their holdings.
Across all 13F filers, reported Bitcoin ETF exposure fell roughly 14% over the same period. Meanwhile, wealth platforms and sovereign funds increased their Bitcoin exposure, a shift that early third-quarter filings appear to confirm. Since the June 2026 low, US spot Bitcoin ETFs have regained 87,000 BTC, and year-to-date net inflows were about $355 million as of mid-October 2026. October, however, brought net outflows and slower buying by corporate treasuries.
Galaxy's supply-demand indicator showed a roughly 127,300 BTC year-to-date shortfall as of October 18, 2026, meaning long-term holders sold more than institutions absorbed. Galaxy reads recent flows as a sign the bear market may be over and sees prices near $80,000 as a possible accumulation zone; that is the firm's own view, and it has a stake in crypto markets.
why it matters
For investors, 13F data arrives with a lag, so it is more useful for spotting trends than for timing entries. If more wealth managers and sovereign funds report new ETF positions in their third-quarter filings, the handoff thesis gains support. Continued hedge fund selling without new buyers would make the ETF recovery look fragile. The third-quarter 13F deadline is November 16, 2026.
market impact
Bitcoin and spot Bitcoin ETFs: hedge fund selling weighs, while inflows from wealth platforms and sovereign funds offset it
- Bitcoin mixed — hedge fund selling is offset by buying from sovereign funds and wealth platforms
tags
instruments
sources
- Galaxy Research says hedge funds cut 68,000 BTC of spot ETF exposure — Crypto Briefing, 28 October 2026 at 16:20 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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