Key Takeaways
- • Nine hedge funds pulled about 68,000 BTC, or roughly $5.4bn, of spot bitcoin ETF exposure between September 2025 and June 2026, according to Galaxy Research.
- • The named sellers include Brevan Howard, Farallon, Millennium, D.E. Shaw and Tudor.
- • The exits follow the collapse of the cash-and-carry basis trade, which had supported hedge fund positioning in spot bitcoin ETFs.
Summary
Galaxy Research data show that nine hedge funds reduced their spot bitcoin ETF exposure by about 68,000 BTC, or roughly $5.4bn, between September 2025 and June 2026. The firms identified include Brevan Howard, Farallon, Millennium, D.E. Shaw and Tudor.
The redemptions follow the collapse of the cash-and-carry basis trade. In this strategy, managers hold spot bitcoin and short the corresponding futures contract to capture the price gap between the two markets. As the trade's returns deteriorated, the positioning that had accompanied it unwound, and the ETF exposure was reduced accordingly.
The outflows point to a reduction in basis-driven demand for spot bitcoin ETF exposure among hedge funds. Reporting on the story is limited to the Galaxy Research figures and the headline framing, so the broader impact on ETF flows and bitcoin pricing is not quantified in the available coverage.
The redemptions follow the collapse of the cash-and-carry basis trade. In this strategy, managers hold spot bitcoin and short the corresponding futures contract to capture the price gap between the two markets. As the trade's returns deteriorated, the positioning that had accompanied it unwound, and the ETF exposure was reduced accordingly.
The outflows point to a reduction in basis-driven demand for spot bitcoin ETF exposure among hedge funds. Reporting on the story is limited to the Galaxy Research figures and the headline framing, so the broader impact on ETF flows and bitcoin pricing is not quantified in the available coverage.
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