More than $ 5B Infusion in Bitcoin (BTC) ETFS – Thanks for the bold bullish price of Bets
Billions of dollars flowed into the area listed in the US Bitcoin
Funds exchanged by the exchange (ETF) in recent weeks, while cryptocurrency has removed a sharp recovery rally from $ 75,000 to $ 100,000.
Most investment is likely to be driven by bold, strategic bullish directional bets rather than market arbitration plays, data suggests.
11 ETF spots were drawn to $ 2.97 billion in investor money in April, with an additional $ 2.64 billion flowing until this month, according to the data resource Socal. That has strengthened the Net Inflow since the beginning of January 2024 to more than $ 41 billion.
Institutions have historically used these ETFs to set up non-direct arbitrage performing to earn from price variations between the futures and markets of Bitcoin. The so -called Cash and carrying arbitration involves buying ETFs while simultaneously selling CME futures to pocket the futures premium while preventing risks in price direction.
But the flows since early April seemed to be driven by bullish directional bets, not the arbitration play. This is shown in a report of the Promise of the Business (COT) published by the Commodities Futures Trading Commission (CFTC) each week.
Data shows leveraged funds, standard fence funds and various types of currency managers, including registered commodity trade advisors, have trimmed their net shorts to 14,139 contracts from 17,141 contracts in early April, according to data monitored by Tradingster.
The number of shorts increases if trading carries primarily encouraged net inflows.
“CFTC data shows leveraged funds have not significantly increased short positions, indicating that most of the flows are stakes, not arbitration,” Imran Lakha, founder of choice options, in a blog post published in the derivit.
Moving to the nature of the ETFs in the ETFs suggests big players are increasingly using ETFs to express a clear market outlook in the future Bitcoin direction.
Bitcoin’s hands last changed to $ 102,700 at the time of press, according to Coindesk data.
