According to Bloomberg, hedge funds that once fueled the US Bitcoin ETF boom are rapidly retreating. Data from CF Benchmarks shows that the total allocation of Bitcoin ETFs held by the largest hedge fund holders decreased by 28% from Q3 to Q4 2025. Research director Gabe Selby stated that the main theme over the past two quarters has been hedge fund de-risking, with the October peak triggering systematic deleveraging. Previously popular Bitcoin basis trading (buying spot ETFs and shorting CME futures) has seen a significant decline in returns, with Amberdata data indicating that the annualized return for this strategy has fallen to about 4%, below the previous double-digit levels. Meanwhile, investment advisory firms continue to increase their holdings of IBIT, with a 145% year-over-year growth in positions over the past year.