Wall Street’s Fast Money Fled Bitcoin ETFs, Sovereign Funds Stepped In

According to research conducted by Galaxy, a significant shift in institutional investment in Bitcoin spot ETFs has been observed. The analysis indicates that nine major hedge funds and banks collectively divested approximately 68,000 BTC from their spot ETF holdings. This reduction is primarily linked to the drying up of the cash-and-carry trade, a strategy that previously offered arbitrage opportunities. Counterbalancing this divestment, the research highlights that wealth management platforms and sovereign funds have actively increased their exposure to Bitcoin spot ETFs. This suggests a rotation of institutional capital and a potential long-term accumulation trend from different types of institutional players, even as short-term arbitrage opportunities diminish.