Hedge funds have ramped up their ETF exposure threefold over the past three years, hitting $300 billion and accounting for 9% of reported 13F assets. They deploy these vehicles for everything from tactical shorts to broader strategies, yet compete directly with them in a classic frenemy setup—think Bitcoin and BTC spot ETFs drawing massive inflows. Eric Balchunas highlights top players in a fresh Bloomberg Intelligence note by James Seyffart, underscoring hedge fund ETF exposure trends and 13F filings analysis in the evolving ETF market growth landscape of 2026.