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UNIGalaxy says hedge funds drove Bitcoin ETF selling as sovereign funds bought
A Galaxy Research report says nine banks and hedge funds cut 68,000 BTC of spot Bitcoin ETF exposure, with wealth platforms and Abu Dhabi funds buying on the other side.
Why it matters: The report links institutional ETF selling to a shrinking futures basis rather than lost conviction, showing how carry-trade economics can move large Bitcoin positions.
Key points
- Millennium, Goldman Sachs, Tudor and six others cut 68,000 BTC, about $5.4bn at recent prices, trimming 29% to 100%.
- The front-month futures basis averaged 4.8% in the 30 days to 21 Oct, just 0.6 points over Treasury bills.
Nine firms, including Millennium Management, Brevan Howard, Goldman Sachs and Tudor Investment, cut 68,000 BTC between them, roughly $5.4bn at recent prices, trimming positions by 29% to 100%. The other 2,200 or so filers added about 20,000 BTC in aggregate.
The front-month basis averaged 4.8% in the 30 days to 21 Oct, just 0.6 points above three-month Treasury bills, leaving about 1.5 points over cash after costs. CFTC data shows asset managers' net long CME Bitcoin futures position fell 57% from the week of the all-time high.
Live updates on NewsFeeds:ETFsDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
How this was produced: an AI model wrote this summary of Decrypt’s report, which we credit and link above. Read our Editorial and AI policy. Spotted a mistake? See Corrections.
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