Key Takeaways
- • Galaxy Research, analyzing 13F filings, found nine hedge funds cut their spot Bitcoin ETF holdings by roughly 68,000 BTC between late September 2025 and June 2026.
- • Galaxy attributes the selling to yield comparisons against Treasury bills rather than a loss of conviction in Bitcoin, as the trade's relative payoff shrank.
- • Across all 13F filers, reported Bitcoin ETF exposure fell about 14% over the same window, while wealth platforms and sovereign funds increased exposure.
- • US spot Bitcoin ETFs have recovered 87,000 BTC in holdings since their June 2026 low, with year-to-date net inflows of approximately $355 million as of mid-October 2026.
- • Galaxy's supply-demand indicator shows a year-to-date gap of roughly 127,300 BTC between long-term holder distributions and institutional absorption as of October 18, 2026; Q3 13F filings are due November 16, 2026.
Summary
According to Galaxy Research, the investors who reduced US spot Bitcoin ETF exposure during the 2026 downturn were hedge funds rather than retail traders. Nine funds cut their holdings by roughly 68,000 BTC between late September 2025 and June 2026. Galaxy built its analysis from 13F filings, the quarterly disclosures large US money managers must file, and found that the reductions tracked how the trade paid relative to Treasury bills. Galaxy characterizes the exits as a yield-driven decision rather than a sudden loss of faith in Bitcoin.
Across all 13F filers, reported Bitcoin ETF exposure fell about 14% over the same window, and the nine flagged hedge funds accounted for a sizable share of that decline. Galaxy found that wealth platforms and sovereign funds increased their Bitcoin exposure during the same period, a shift that early Q3 13F filings have begun to confirm. Wealth manager SigFig has disclosed Bitcoin ETF additions worth around $73 million to $74 million.
Flow data show partial recovery. US spot Bitcoin ETFs have regained 87,000 BTC in holdings since their June 2026 low, and year-to-date net inflows stood at approximately $355 million as of mid-October 2026. October was weaker, bringing net ETF outflows and slower buying from corporate treasuries. Galaxy's supply-demand indicator showed a year-to-date gap of roughly 127,300 BTC between long-term holder distributions and institutional absorption as of October 18, 2026, indicating supply still outran institutional demand this year.
Galaxy reads the recent movements as signs that Bitcoin's bear market may have ended and views prices near $80,000 as a potential accumulation opportunity. The article notes this is the view of a firm with a clear stake in crypto markets. It also cautions that 13F data are lagged and better suited to identifying trends than timing trades. Investors will be watching the November 16, 2026 Q3 13F deadline; continued hedge fund trimming without offsetting buyers could leave the recent ETF recovery fragile.
Across all 13F filers, reported Bitcoin ETF exposure fell about 14% over the same window, and the nine flagged hedge funds accounted for a sizable share of that decline. Galaxy found that wealth platforms and sovereign funds increased their Bitcoin exposure during the same period, a shift that early Q3 13F filings have begun to confirm. Wealth manager SigFig has disclosed Bitcoin ETF additions worth around $73 million to $74 million.
Flow data show partial recovery. US spot Bitcoin ETFs have regained 87,000 BTC in holdings since their June 2026 low, and year-to-date net inflows stood at approximately $355 million as of mid-October 2026. October was weaker, bringing net ETF outflows and slower buying from corporate treasuries. Galaxy's supply-demand indicator showed a year-to-date gap of roughly 127,300 BTC between long-term holder distributions and institutional absorption as of October 18, 2026, indicating supply still outran institutional demand this year.
Galaxy reads the recent movements as signs that Bitcoin's bear market may have ended and views prices near $80,000 as a potential accumulation opportunity. The article notes this is the view of a firm with a clear stake in crypto markets. It also cautions that 13F data are lagged and better suited to identifying trends than timing trades. Investors will be watching the November 16, 2026 Q3 13F deadline; continued hedge fund trimming without offsetting buyers could leave the recent ETF recovery fragile.
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