Back

Hedge Funds Reduce Ethereum ETF Exposure as Institutions Expand Holdings

Bloomberg analyst James Seyffart reports a shift in Ethereum ETF investments, with hedge funds cutting back post-October’s basis trade collapse, while institutional investors like Harvard’s endowment increase exposure.

ETH

Summary

Bloomberg analyst James Seyffart revealed that in Q4 2025, hedge funds reduced their Ethereum spot ETF positions after the collapse of the Ethereum basis trade in early October. Meanwhile, long-term institutional investors, such as Harvard’s endowment, increased their holdings, showing a contrast in investment strategies between short-term traders and long-term institutions.

Terms & Concepts
  • Ethereum spot ETF: An exchange-traded fund holding actual Ethereum rather than futures, allowing direct exposure to its market price.
  • 13F filing: A quarterly report submitted by institutional investors in the United States to disclose equity holdings to the U.S. Securities and Exchange Commission (SEC).
  • basis trade: A strategy exploiting the price difference between a spot asset and its derivatives, often used in crypto and traditional markets.