According to @KobeissiLetter citing the CFTC Commitments of Traders report, hedge funds were net short 92,786 VIX futures contracts in the week ending August 19, 2025, the largest net short since September 2022. Cboe explains that being short VIX futures benefits when equity volatility declines and is vulnerable when volatility rises, indicating funds are positioned for subdued volatility. Cboe also documents that VIX typically moves inversely to the S&P 500, while Kaiko Research reports that BTC has maintained a positive correlation with U.S. equities in 2023–2024, so crypto traders should monitor this short-vol build-up as a potential risk-on tailwind for BTC and ETH while recognizing crowding risk if volatility spikes.