Update
Hedge Funds Dump Bitcoin ETFs While Sovereign Funds Buy
Hedge funds and banks, including Millennium, Goldman Sachs, and Tudor, sold $5.4 billion of Bitcoin ETF exposure. In contrast, sovereign funds such as Abu Dhabi's Mubadala and the Abu Dhabi Investment Council bought the dip. The hedge funds were exiting a trade that no longer provided a significant profit margin. The basis, or the difference between spot Bitcoin ETF shares and CME Bitcoin futures, has decreased from 7.9% annualized to 4.8% over the same period. As a result, the net long position on CME fell from 43,300 BTC to 18,400 BTC, and the net short position of leveraged funds also decreased. Asset managers' net long position on CME also fell, indicating that the money is betting on price rather than the spread. Since the June low, ETFs have been net buyers, which indicates that they are betting on price, not the spread.