NewsSignals AI analysis·Crypto Briefing·Oct 28, 2026

Galaxy Research says hedge funds cut 68,000 BTC of spot ETF exposure

Grade Bbullish AI signal$BTC

Galaxy Research says nine hedge funds cut their spot Bitcoin ETF exposure by roughly 68,000 BTC between late September 2025 and June 2026, while wealth platforms and sovereign funds increased their holdings. US spot Bitcoin ETFs have recovered 87,000 BTC since their June 2026 low, with year-to-date net inflows of approximately $355 million as of mid-October despite October outflows. Upcoming Q3 13F filings due November 16 could clarify whether institutional buyers are sustaining Bitcoin's recovery or whether continued hedge fund selling will pressure demand.

Bullish strength: 60/100

US spot Bitcoin ETFs recovered 87,000 BTC in holdings since their June 2026 low.
Year-to-date ETF net inflows remained positive at approximately $355 million as of mid-October.
Wealth platforms and sovereign funds increased Bitcoin exposure during the hedge fund retreat.
Galaxy Research views prices near $80,000 as a potential accumulation opportunity.

Bearish strength: 40/100

Nine hedge funds reduced spot Bitcoin ETF exposure by roughly 68,000 BTC.
Galaxy's supply-demand indicator showed long-term holder distribution exceeding institutional absorption by approximately 127,300 BTC year to date.
October brought net outflows from spot Bitcoin ETFs and slower corporate treasury buying.
Continued hedge fund selling without offsetting institutional demand could weaken the ETF recovery.

This is automated NewsSignals analysis of third-party reporting, not independent original reporting or investment advice. AI scores are not price predictions.

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