Data released by the Federal Reserve shows U.S. hedge funds expanded their gross balance sheets by $400 billion in the second quarter, bringing the total value to $3.19 trillion. Securities sold short rose by $148 billion to reach $799 billion, while margin loans to U.S. broker-dealers increased by $21 billion to $131 billion. The Fed’s FOMC is scheduled to meet September 15-16, 2026, and a surprise on rates or the policy outlook could raise funding or collateral demands across leveraged portfolios, forcing funds to find cash in liquid markets. A Bitcoin spillover would remain conditional on tighter secured funding and visible selling across risk assets, according to the Fed’s Financial Stability Report.
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