Galaxy Research says hedge funds cut 68,000 BTC of spot ETF exposure

The financiers who disposed Bitcoin ETF shares throughout the most recent recession were not worried retail traders. According to Galaxy Research, they were hedge funds.

9 of them cut their area Bitcoin ETF holdings by approximately 68,000 BTC in between late September 2025 and June 2026. Galaxy’s read of the selling is significantly pragmatical: the exits tracked how the trade paid relative to Treasury costs, not an abrupt loss of faith in Bitcoin.

What the 13F filings reveal

Galaxy developed its analysis from 13F filings. These are the quarterly disclosures big United States cash supervisors need to send to reveal what they hold.

Throughout all 13F filers, reported Bitcoin ETF direct exposure fell by about 14% over the very same window. The 9 hedge funds Galaxy flagged represented a large portion of that retreat.

The timing lines up with Bitcoin’s slide through late 2025 and into early 2026. The fascinating part is who based on the opposite of those trades. Galaxy discovered that wealth platforms and sovereign funds increased their Bitcoin direct exposure throughout the very same stretch, a shift that early Q3 13F filings have actually begun to verify.

A yield trade, not a separation

Galaxy’s framing matters since it alters how the selling must read. If hedge funds were determining their Bitcoin ETF positions versus what Treasury expenses used, then diminishing that edge sufficed factor to leave.

That difference matters for anybody tracking ETF streams as a belief gauge. Huge outflows from hedge funds can appear like a referendum on the property when they are actually a spreadsheet choice.

The circulation photo because June

The ETFs have actually clawed back some ground. United States area Bitcoin ETFs have actually recuperated 87,000 BTC in holdings given that their June 2026 low.

Year-to-date net inflows stood at roughly $355 million since mid-October 2026. That figure remains favorable even after a rough spot for the funds.

October itself was less friendly. The month brought net outflows from the ETFs and a downturn in purchasing from business treasuries, the business that hold Bitcoin on their balance sheets.

Galaxy’s supply-demand indication includes another wrinkle. Since October 18, 2026, it revealed a year-to-date space of approximately 127,300 BTC in between what long-lasting holders dispersed and what organizations soaked up.

Who is purchasing now

The next batch of proof gets here quickly. Q3 13F filings are due by November 16, 2026, and early submissions currently mean a modification in tone.

Wealth supervisor SigFig, for instance, has actually divulged additions of Bitcoin ETFs worth around $73 million to $74 million.

What this suggests

Galaxy’s own analysis leans useful. The company checks out the current motions as indications that Bitcoin’s bearish market might have ended, and it sees rates near $80,000 as a prospective build-up chance.

That is Galaxy’s view, and it originates from a company with a clear stake in crypto markets. Readers must weigh it appropriately.

There are clear cautions. The 127,300 BTC space in Galaxy’s sign reveals supply still outran institutional need this year, and October’s ETF outflows plus slower business treasury purchasing reveal the quote is not ensured.

The 13F information likewise gets here with a lag. By the time filings land, positions might currently have actually altered, that makes them much better for identifying patterns than for timing trades.

For financiers, the November 16 filing due date is the date to view. If more wealth supervisors and sovereign funds appear with fresh ETF positions, it would enhance the handoff story Galaxy is informing.

If the filings rather reveal ongoing hedge fund cutting without balancing out purchasers, the healing in ETF holdings considering that June might show vulnerable.