10x Research: Bitcoin ETF Sees Mild Decrease in Size, Still Dominated by Neutral and Hedge Positions

BlockBeats News, February 18th - Cryptocurrency research firm 10x Research pointed out that despite a 46% drop in Bitcoin price from its peak, Bitcoin ETFs only saw a net outflow of $8.5 billion, which is a relatively modest decrease compared to the total ETF assets under management. The structural characteristics of ETF ownership show that the dominant players are market makers and arbitrage-focused hedge funds, whose positions are mostly hedged or market-neutral rather than directional bets on Bitcoin. Additionally, a significant portion of the holdings belongs to long-term institutional investors with low turnover and longer investment horizons.

According to the latest 13F filing data for the fourth quarter of 2025, it is estimated that 55–75% of the $61 billion in assets under BlackRock's IBIT are still held by market makers and arbitrage-focused hedge funds. In the fourth quarter of 2025, during a consolidation period around a Bitcoin price of $88,000, market makers reduced their exposure by approximately $1.6–2.4 billion, reflecting a decline in speculative demand and reduced arbitrage opportunities.