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Hedge funds sell, sovereign wealth funds buy as bitcoin ETF holdings reshaped

Institutional selling of spot bitcoin exchange-traded funds during a bitcoin downturn was concentrated among a small number of hedge funds and banks, according to an analysis of 13F filings. Total holdings by 13F filers fell about 14 percent from end-September 2025 to end-June 2026, while others increased holdings. Morgan Stanley’s wealth unit and Abu Dhabi investors were among buyers. Galaxy said reduced arbitrage profitability drove selling as the futures basis narrowed.