Decrypt's Morning Minute examines why hedge funds exited the bitcoin ETF trade while sovereign wealth funds and wealth managers bought. Citing SEC filings, the newsletter says nine hedge funds and banks, including Millennium, Brevan Howard and Goldman Sachs, sold about 68,000 bitcoin worth of ETF shares from the October 2025 high through June, roughly $5.4 billion at current prices. The main driver was shrinking returns on the ETF-futures trade: its annualized spread fell from 7.9% before the high to 4.8% by late October, and Galaxy's Alex Thorn estimates only about 1.5 points remain over T-bills after fees and financing. Morgan Stanley's wealth management arm, Mubadala and the Abu Dhabi Investment Council bought, while investors too small to file cut holdings by just 6.6% as the price fell 49%. Funds have since added about 87,000 bitcoin, and October ETF flows were nearly flat by Tuesday, with $724 million arriving in the last eight sessions.
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bitcoinETFhedge fundscapital flows
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Related tickers and likely impact
BTC/USDT
▲ Likely positiveBitcoin
Relevance: medium
| Market | Crypto |
|---|---|
| Exchange | Binance |
| Sector | Layer 1 |
| Market cap | $1.6T |
| Close on 10/28/2026 | 81,343.50 |
| Change that session | +0.54% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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