Morning Minute: Hedge Funds Left the BTC ETF Trade and Sovereign Wealth Stepped In
Summary
SEC filings show nine hedge funds and banks sold about 68,000 Bitcoin ETF shares worth roughly $5.4 billion from before Bitcoin’s October 2025 peak through June, largely as cash-and-carry arbitrage returns dwindled. Sovereign funds, wealth managers and other investors bought about 20,000 Bitcoin, while smaller holders reduced positions only modestly despite a steep price decline. Since June, funds have added back 87,000 Bitcoin through direct buying. The newsletter argues that easing rate expectations and recent inflows could support a market recovery.
