According to TechFlow, according to data from ETC Group, crypto hedge funds' Bitcoin market exposure has fallen to its lowest level since October 2020.
“Crypto hedge funds have recently reduced their Bitcoin exposure significantly, falling to 0.37 over the past 20 trading days, the lowest level since October 2020,” said André Dragosch, head of research at ETC Group. He added that the trend coincides with net outflows from crypto exchange-traded products.
Dragosch noted that hedge funds are often pro-cyclical and may re-enter the market when the market rises again.