{"id":94508,"date":"2026-02-20T16:50:41","date_gmt":"2026-02-20T13:50:41","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=94508"},"modified":"2026-02-20T16:56:37","modified_gmt":"2026-02-20T13:56:37","slug":"crypto-funds-zero-out-bitcoin-and-ether-positions-for-the-first-time","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/crypto-funds-zero-out-bitcoin-and-ether-positions-for-the-first-time\/","title":{"rendered":"Crypto funds zero out bitcoin and ether positions for the first time"},"content":{"rendered":"

A correction in the crypto market has pushed many professional investors into liquid assets or higher cash allocations, Bloomberg<\/a> reports.<\/p>\n

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\u201cBitcoin has found a new range around $60,000 and is drifting there without the slightest directional conviction,\u201d said Bohan Jiang, senior derivatives trader at FalconX.<\/em><\/p>\n<\/blockquote>\n

At the time of writing, the leading cryptocurrency changes hands around $67,400\u2014almost 50% below the all-time high near $126,000.<\/p>\n

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Hourly chart of BTC\/USDT on Binance. Source: TradingView<\/a>.\u00a0<\/figcaption><\/figure>\n

Defensive stance<\/h2>\n

Surveys by Crypto Insights Group indicate many managers cut risk in the fourth quarter.<\/p>\n

Sigil Fund said it had, for the first time, reduced its exposure to bitcoin and Ethereum to zero, trimming risky positions to 40% of the portfolio amid a worsening risk\u2013reward profile.<\/p>\n

Basis trades suffered in particular, in which funds bought bitcoin on spot (or via ETF<\/a>) and sold longer-dated futures to capture the spread. After the slump, the strategy stopped paying.\u00a0<\/p>\n

Crypto Insights Group noted managers now prioritise capital preservation and flexibility, widening mandates to include crypto-adjacent equities.<\/p>\n

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\u201cThe growth of cash buffers suggests most are waiting for clear macro signals, regulatory triggers, or a durable return of liquidity before re-entering higher-beta, riskier tokens,\u201d the analysts concluded.<\/em><\/span><\/p>\n<\/blockquote>\n

\u2018Unprecedented\u2019 outflow\u00a0\u00a0<\/h2>\n

Over 100 days, the total value of the digital-assets sector shrank by $730.6 billion, noted CryptoQuant specialist GugaOnChain. He called it \u201can unprecedented short-term capital flight\u201d that is accelerating the contraction of the crypto market.\u00a0<\/p>\n

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100 Days in the Red<\/p>\n

\u201cIn just 100 days, the crypto market has erased more than $730 billion in value. What we are witnessing is an unprecedented short-term capital flight, deepening the contraction of the crypto economy.\u201d \u2013 By @GugaOnChain<\/a> pic.twitter.com\/SaSUGUBBgu<\/a><\/p>\n

\u2014 CryptoQuant.com (@cryptoquant_com) February 20, 2026<\/a><\/p><\/blockquote>\n