Scan with your phone to get the appWall Street’s fast money pulled out of Bitcoin ETFs, sovereign funds stepped in
Galaxy Research reported that during Bitcoin's 2026 slump, the bulk of institutional selling in U.S. spot Bitcoin ETFs was driven by nine hedge funds and banks, which cut about 68,000 BTC (≈$5.4 bn) from their positions.
Wealth platforms and sovereign funds such as Morgan Stanley Wealth Management, Mubadala and the Abu Dhabi Investment Council stepped in as buyers, limiting the overall drop in ETF holdings to about 11% from the October 2025 peak to the July 2026 trough.
Investors employed a cash‑and‑carry strategy—buying spot ETF shares while shorting CME Bitcoin futures—to capture the basis. As the basis narrowed, the trade’s edge fell to roughly 1.5 % over cash, prompting multi‑strategy desks to exit.
CFTC data shows asset managers' net long positions fell 57% (from 43,300 BTC to 18,400 BTC) and leveraged funds' net short positions shrank similarly, indicating reduced inflows into Bitcoin ETFs.
Summary rewritten by AI from the original article by Decrypt.
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Sovereign funds buying signals bullish
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