October 14, 2025 | 22:23
Ray Dalio, the billionaire hedge fund manager, cautions that meme stock investors are overly focused on past performance and emotions rather than market pricing—the ‘most important thing.’ He highlights the risks of leverage-driven speculation in the current economic climate. Separately, Dalio calls for urgent US fiscal reforms, proposing a three-part solution (tax hikes, spending cuts, and interest rate management) to slash the budget deficit from 7% to 3% of GDP, mirroring 1990s-era adjustments. His warnings come amid concerns over $1 trillion in annual interest payments and $9 trillion in maturing debt.
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2 in Finance and 0 in Crypto last week
Hedge Funds Hire Weekend Crypto Traders as Markets Never Sleep
Major hedge funds and trading firms, including Qube Research & Technologies, Virtu, and Jump, are recruiting weekend crypto traders to manage nonstop digital asset markets. Qube’s London-based role for a ‘Crypto | Quant Trader (Weekend Shift)’ requires weekend availability alongside a four-day workweek, emphasizing risk monitoring and strategy execution. This trend reflects the growing influence of crypto on global finance, forcing traditional firms to extend trading operations beyond standard hours to stay competitive in an always-on market.
read moreJohn Wu: Bridging TradFi and Crypto with Avalanche
John Wu, President of Ava Labs, is leveraging his deep regulatory and institutional experience to bridge traditional finance and crypto through Avalanche. With a background at Tiger Management and degrees from Cornell and Harvard, Wu transitioned from Wall Street to blockchain, seeing untapped potential in rebuilding financial infrastructure. At Ava Labs, he focuses on creating a blockchain suited for institutional adoption, emphasizing long-term trust over short-term hype. Wu also engages in real-world asset tokenization, regulatory discussions, and expanding Avalanche’s global footprint, including in Latin America. Beyond crypto, he and his wife fund scholarships at Cornell, reflecting his commitment to both innovation and social impact. Wu’s approach combines the discipline of traditional finance with the dynamism of crypto, positioning Avalanche as a bridge between these two worlds.
read moreSpot Ethereum ETFs See 14-Day Inflow Streak, Surpass $3B
Spot Ethereum ETFs have experienced a 14-session streak of net inflows, adding approximately $812 million since May 20, according to Bloomberg data. This surge has pushed total net inflows past $3 billion for the first time, with BlackRock’s iShares Ethereum Trust (ETHA) leading the pack at $576 million in inflows. Fidelity’s Wise Origin Ether Fund (FETH) followed with $123 million, while Grayscale’s ETHE saw significant outflows. Institutional interest remains strong, with investment advisors holding $582.4 million in exposure, hedge funds at $244.7 million, and brokerages at $159.3 million, collectively surpassing $1 billion in reported positions.
read moreInstitutional Bitcoin ETF Holdings Decline as Corporate BTC Reserves Rise
Q1 2025 13F filings revealed a decline in institutional holdings of spot Bitcoin ETFs, with hedge funds like Millennium Management and Brevan Howard reducing exposure. The collapse of the BTC futures basis trade, which had fueled early demand, contributed to the shift. However, long-term investors, including sovereign wealth funds and endowments, increased positions. Meanwhile, corporate Bitcoin reserves gained traction, with firms like Trump Media Group and GameStop opting for direct holdings over ETFs. Despite the pullback, Bitcoin ETF assets remain substantial at over $120 billion, though growth may slow as arbitrage-driven strategies fade. The next 13F cycle in July will provide further clarity on institutional trends.
read moreInstitutions Cut Bitcoin ETF Exposure by 23% in Q1
Institutional investors slashed Bitcoin ETF allocations by 23% in Q1 2024, as revealed by CoinShares’ analysis of 13-F filings. Hedge funds led the reduction, cutting exposure by nearly 33% due to fading appeal of the basis trade, while advisors increased Bitcoin-denominated stakes. Despite the decline, professional investors still hold 23% of Bitcoin ETF assets, with BlackRock’s IBIT, Fidelity’s FBTC, and Grayscale’s GBTC dominating institutional ownership. The report attributes the pullback to profit-taking rather than long-term bearishness, noting corporate treasuries expanded Bitcoin reserves by 18.7% YTD. Regulatory clarity and internal approvals may spur renewed institutional interest.
read moreRIAs Lead Bitcoin ETF Holdings with $10B+ in BTC
New 13F filings reveal a significant shift in institutional Bitcoin ETF holdings, with RIAs now leading with over $10.2 billion in BTC exposure—surpassing hedge funds ($7B) and brokerages ($2.1B). Bloomberg analyst Eric Balchunas notes this trend, while industry insiders highlight how RIAs are repackaging crypto investments as exclusive hedge funds for high-net-worth clients. Former Fidelity executive William Poulin points to a growing strategy where RIAs place Bitcoin and Ethereum into limited partnerships (LPs), charging management fees akin to traditional hedge funds (1% AUM + 15% performance fees). This signals deepening institutional adoption of crypto through regulated vehicles.
read moreHedge Funds Buy Stocks at Fastest Pace Since 2024: Goldman
Goldman Sachs reports that hedge funds are purchasing global equities at the highest rate since November 2024, driven by bullish sentiment across all regions, particularly North America and Europe. The S&P 500 saw a 6% rise in May—its best performance for the month since 1990. Hedge funds heavily favored the tech sector, especially AI-focused companies like semiconductor manufacturers and hardware producers. Single stocks dominated purchases, though some index-long trades were also made. European tech, consumer discretionary, and healthcare stocks also saw significant interest. The trend reflects strong confidence in continued market growth.
read moreBitcoin ETFs See Record Inflows as BTC Tops $100K
Bitcoin ETFs recorded their best trading day since May 2, with total inflows reaching $667.4 million. Fidelity’s Wise Origin Bitcoin Fund and ARK 21Shares Bitcoin ETF accounted for more than half of the inflows, while BlackRock’s iShares Bitcoin Trust dominated with $305.9 million. Bitcoin’s price surged past $100,000 for 12 consecutive days, hitting a record weekly close. Hedge funds are capitalizing on the spot-futures basis trade, while gold’s 22% YTD gains outpace Bitcoin’s 12%. Vanguard remains absent from the Bitcoin ETF space, though analysts speculate it may reconsider if BTC reaches $150K-$200K.
read moreCrypto ETPs Set for Major Inflows as Allocations Rise to 5%
Bitwise Chief Investment Officer Matt Hougan forecasts a significant increase in crypto exchange-traded product (ETP) adoption, with major financial firms expected to enable access by 2025. Institutional interest is growing, with inflows potentially reaching “many billions,” and portfolio allocations shifting from 1% to 5%. Bitcoin remains dominant, but Ethereum is gaining traction, particularly among family offices. BlackRock has already integrated Bitcoin into its model portfolios, while Ethereum ETPs show balanced institutional ownership. This trend reflects a broader maturation of crypto in professional investment strategies.
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