As of November 3, leveraged funds held net short positions of 12,955 BTC in CME standard Bitcoin futures, down 89% from a peak of 115,985 BTC on December 17, 2024, and the lowest level since February 2023. According to Foresight News, the data cited by Unfolded came from CFTC positioning reports and indicate that hedge funds have substantially unwound Bitcoin basis trades.

Unfolded said arbitrage buying that had previously driven ETF inflows has largely disappeared. As a result, spot ETF flows may increasingly reflect directional demand, while structural buying that could cushion price declines may also diminish.