According to Bloomberg, hedge funds that previously drove U.S. Bitcoin exchange-traded fund (ETF) growth are now scaling down positions, signaling a shift in institutional sentiment.
Hedge funds that contributed to the surge in U.S. Bitcoin ETF activity are reportedly retreating from the market, according to Bloomberg. The development suggests shifting risk appetite or profit-taking among institutional investors who entered when ETF trading volumes were high. This reversal may influence near-term liquidity and asset flow within Bitcoin-linked investment products.