Galaxy Research Reports Hedge Funds Cut 68,000 Bitcoin from Spot ETFs as Yields Compressed

U.S. spot Bitcoin ETFs have regained roughly 87,000 BTC since bottoming in June 2026, bringing year-to-date net inflows to approximately $355 million through mid-October 2026, despite persistent headwinds and October outflows. According to Galaxy Research, institutional 13F spot ETF holdings dropped 14% from 355,000 BTC to 307,000 BTC between late September 2025 and June 2026. Nine prominent hedge funds and banks shed about 68,000 BTC worth $5.4 billion as annualized CME futures basis compressed to 4.8%. That selling was largely absorbed by wealth management platforms and sovereign wealth funds.