Hedge funds have sharply reduced their net short positions in CME Bitcoin futures, which stood at 2,591 contracts, or approximately 12,955 BTC, on November 3, 2026. This was the lowest level since February 2023, down 89% from the peak reached in December 2024. The CME Bitcoin futures basis has fallen to an annualized 4.8%, providing minimal excess returns over US Treasury yields. Nine hedge funds also cut their spot Bitcoin ETF exposure by approximately 68,000 BTC, worth around $5.4 billion, between September 2025 and June 2026. As hedged carry trades wind down, ETF flows may provide a clearer signal of genuine demand and directional conviction than previously.
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