{"id":13214,"date":"2026-09-14T13:15:33","date_gmt":"2026-09-14T13:15:33","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=13214"},"modified":"2026-09-14T13:15:33","modified_gmt":"2026-09-14T13:15:33","slug":"hedge-fund-assets-rise-400b-before-bitcoins-fed-test","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=13214","title":{"rendered":"Hedge fund assets rise $400B before Bitcoin\u2019s Fed test"},"content":{"rendered":"<p><\/p>\n<div data-cs-editorial-quote-scope=\"\" data-cs-image-viewer-scope=\"\" data-single-article-content=\"\">\n<p>Newly released Federal Reserve data show domestic hedge funds expanded their gross balance sheets during the second quarter, months before the central bank\u2019s September rate decision.<\/p>\n<p>The potential risk to Bitcoin is indirect. A policy surprise could raise funding or collateral demands across leveraged portfolios, forcing funds to find cash in liquid markets.<\/p>\n<div class=\"cs-article-embed\">\n<p> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">Fed Chair Kevin Warsh triggers a $488 million crypto liquidation cascade as rate-hike expectations rise<\/h3>\n<\/p>\n<p> <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\"> <i class=\"fa-light fa-arrow-up-right\"\/> <\/span> <\/div>\n<p>Gross asset value was $2.7857 trillion in the first quarter. It reached $3.1859 trillion in the second quarter. That was a $400 billion increase. The table defines gross asset value as total assets, not gross notional exposure.<\/p>\n<p>Securities sold short stood at $651 billion in the first quarter. The total reached $799 billion in the second quarter. That marked a $148 billion rise.<\/p>\n<p>Margin loans due to U.S. security brokers and dealers were $110 billion in the first quarter. They reached $131 billion in the second quarter. That was a $21 billion increase.<\/p>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-562172\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-c36bbc7d-0e64-4926-a5f6-b7e58647525b.png\" alt=\"Federal Reserve chart showing Q2 increases in hedge fund gross assets, short securities and broker-dealer margin loans.\" width=\"720\" height=\"900\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-c36bbc7d-0e64-4926-a5f6-b7e58647525b.png 1122w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-c36bbc7d-0e64-4926-a5f6-b7e58647525b-240x300.png 240w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-c36bbc7d-0e64-4926-a5f6-b7e58647525b-819x1024.png 819w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-c36bbc7d-0e64-4926-a5f6-b7e58647525b-768x960.png 768w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\"\/><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"lazyload aligncenter wp-image-562172\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-c36bbc7d-0e64-4926-a5f6-b7e58647525b.png\" alt=\"Federal Reserve chart showing Q2 increases in hedge fund gross assets, short securities and broker-dealer margin loans.\" width=\"720\" height=\"900\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-c36bbc7d-0e64-4926-a5f6-b7e58647525b.png 1122w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-c36bbc7d-0e64-4926-a5f6-b7e58647525b-240x300.png 240w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-c36bbc7d-0e64-4926-a5f6-b7e58647525b-819x1024.png 819w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-c36bbc7d-0e64-4926-a5f6-b7e58647525b-768x960.png 768w\" data-sizes=\"(max-width: 720px) 100vw, 720px\"\/><\/p>\n<h2>The Bitcoin spillover test<\/h2>\n<p>The FOMC is scheduled to meet Sept. 15\u201316, 2026, at a gathering associated with its Summary of Economic Projections. A surprise in rates or the policy outlook could reprice Treasury positions and the collateral that finances them.<\/p>\n<aside id=\"cs-inline-newsletter-1\" class=\"cs-inline-newsletter\" data-inline-newsletter=\"\" data-newsletter-placement=\"article-midpoint\" data-newsletter-pending-label=\"Joining\u2026\" data-newsletter-pending-status=\"Joining the Daily Brief\u2026\" data-newsletter-email-required-message=\"Before sending, please provide your email address.\" aria-labelledby=\"cs-inline-newsletter-1-title\" aria-describedby=\"cs-inline-newsletter-1-copy\">\n<div class=\"cs-inline-newsletter__inner\">\n<div class=\"cs-inline-newsletter__content\"> <span class=\"cs-inline-newsletter__eyebrow\"> <i class=\"fa-regular fa-envelope\" aria-hidden=\"true\"\/> The Daily Brief <\/span><\/p>\n<h2 id=\"cs-inline-newsletter-1-title\" class=\"cs-inline-newsletter__title\">The signal, before the noise.<\/h2>\n<p id=\"cs-inline-newsletter-1-copy\" class=\"cs-inline-newsletter__copy\">Start your day with the crypto stories moving markets, decoded by CryptoSlate\u2019s editors.<\/p>\n<\/div>\n<div class=\"cs-inline-newsletter__form-shell\">\n<p class=\"cs-inline-newsletter__form-heading\">One email. Everything that matters.<\/p>\n<p id=\"cs-inline-newsletter-1-privacy\" class=\"cs-inline-newsletter__privacy\">Free to join. Unsubscribe any time.<\/p>\n<p> <i class=\"fa-regular fa-circle-xmark\" aria-hidden=\"true\"\/> <span>Whoops, looks like there was a problem. Please try again.<\/span><\/p>\n<p> <i class=\"fa-regular fa-circle-check\" aria-hidden=\"true\"\/> <span><strong>You\u2019re on the list.<\/strong> Your next Daily Brief is on its way.<\/span><\/p>\n<\/div>\n<\/div>\n<\/aside>\n<p>The leverage backdrop raises the stakes. The Fed\u2019s May Financial Stability Report said comprehensive Form PF data through the third quarter of 2025 put hedge-fund leverage at or near all-time highs. A separate Fed study estimated large qualifying funds had $4 trillion of gross Treasury exposure and $3 trillion of repo cash borrowing in September 2025. Those measurements cover different fund populations and cannot be added to the latest Z.1 figures.<\/p>\n<div class=\"cs-article-embed\">\n<p> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">Bitcoin futures carry trades are quietly beating Treasuries at 7.89% driving $850M Wall Street Bitcoin ETF spree<\/h3>\n<\/p>\n<p> <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\"> <i class=\"fa-light fa-arrow-up-right\"\/> <\/span> <\/div>\n<p>Repo is short-term borrowing backed by securities. Dallas Fed research links hedge-fund net repo demand to constraints on dealers and other cash providers, as well as wider secured funding spreads. BIS research shows how higher margin requirements can force leveraged traders to post cash or unwind positions.<\/p>\n<div class=\"cs-article-embed\">\n<p> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">Bitcoin faces a liquidity squeeze if the yen surges again and carry trades unwind<\/h3>\n<\/p>\n<p> <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\"> <i class=\"fa-light fa-arrow-up-right\"\/> <\/span> <\/div>\n<p>New York Fed data for Sept. 10 put the Secured Overnight Financing Rate, a broad measure of overnight Treasury-backed borrowing costs, at 3.62%. That latest snapshot alone does not establish a funding spike.<\/p>\n<p>A Bitcoin spillover would become more credible if the Fed window brings tighter secured funding, a wider gap between related Treasury cash and futures prices, higher margin demands and visible selling across risk assets. Stable funding and no cross-asset liquidation would weaken the case. Until those signals appear, the Q2 data show amplification capacity rather than an actual Bitcoin sale.<\/p>\n<\/div>\n<p>Analysis,Derivatives,Featured,Macro,Bitcoin,BTCBitcoin,BTC#Hedge #fund #assets #rise #400B #Bitcoins #Fed #test1789391733<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Newly released Federal Reserve data show domestic hedge funds expanded their gross balance sheets during the second quarter, months before the central bank\u2019s September rate decision. The potential risk to Bitcoin is indirect. A policy surprise could raise funding or collateral demands across leveraged portfolios, forcing funds to find cash in liquid markets. Related Reading<\/p>\n","protected":false},"author":1,"featured_media":13215,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[6908,1150,91,42,285,683,489,2950,1296,679],"class_list":["post-13214","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ethereum","tag-400b","tag-assets","tag-bitcoin","tag-bitcoins","tag-btc","tag-fed","tag-fund","tag-hedge","tag-rise","tag-test"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Hedge fund assets rise $400B before Bitcoin\u2019s Fed test - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"description\" content=\"Hedge fund assets rose $400.2 billion in Q2. 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