Galaxy report links Bitcoin ETF institutional drop to fading basis trade
CIE News ·
Based on reporting by Decrypt; not yet independently confirmed.
Institutional holdings in U.S. spot Bitcoin ETFs dropped 14% to 307,000 BTC by June 2026 as nine hedge funds and banks cut 68,000 BTC of exposure, according to Decrypt and Galaxy Research.
Institutional holdings in U.S. spot Bitcoin (BTC) ETFs declined by 14% between September 2025 and June 2026, falling from 355,000 BTC to 307,000 BTC, according to a Galaxy Research report cited by Decrypt. Nine firms accounted for the entirety of that decrease by unwinding 68,000 BTC of exposure, with Millennium Management, Brevan Howard, and Goldman Sachs among the sellers reducing positions by 29% to 100%.
Galaxy attributed the institutional exits to a narrowing cash-and-carry trade rather than directional selling. The annualized gap between CME Bitcoin futures and spot prices averaged 4.8% in the 30 days to October 21, 2026, compared to 7.9% prior to the asset's peak, leaving desks with roughly 1.5 percentage points above cash yields after transaction costs. Commodity Futures Trading Commission data showed asset managers cut net long futures positions by 57% to 18,400 BTC, while leveraged funds reduced net shorts from 71,400 BTC to 30,600 BTC.
While fast-money hedge funds retreated, wealth platforms and sovereign entities including Abu Dhabi's Mubadala and the Abu Dhabi Investment Council expanded their allocations. The roughly 2,200 other 13F-filing entities absorbed an additional 20,000 BTC over the same period.
Key facts
- 307,000 BTC held by June 2026
- 14% drop in institutional holdings
- 68,000 BTC cut by 9 firms
- Mubadala and ADIC bought shares