Stop believing the constant fake drama posts about ETF funds buying or selling large amounts of BTC.
Most of it is arbitrage.
I see a lot of people on square or social media post about this and the posts are very misleading.
It’s not what these funds do that matters it’s what their CLIENTS are doing.
These ETF funds offer many investment options, BTC is only one and makes up a small %, they hold enough BTC to cover clients holdings.
Most large buying and futures sell orders you see posted for clickbait drama usually mean little for the BTC price.
Most of it is arbitrage,
These large funds are taking advantage of the difference in prices on different exchanges worldwide, this includes the prices of Spot BTC ETF funds.
Arbitrage is what keeps prices relatively consistent on pretty much everything traded around the world, including Crypto.
Sometimes prices differ on exchanges for the same asset (For many reasons, mostly supply and demand)
The reason this doesn’t happen for long is because it’s quickly exploited and arbitraged out.
An example,
If Binance has BTC at $61 500 and another exchange or ETF has it listed at $61 300 i can short binance, buy spot on the other and profit the $200 difference(less fees)
Trading bots even do this automatically.
It has nearly a net zero effect on price.
These large holders are doing this with 10s,100s of millions, even smaller price differences matter.
This is done daily across the stock, crypto, commodities markets, it makes news in crypto because the crypto community is widely uninformed and will believe false drama easily.
It is also far easier to track large purchases in crypto than it would be on forex or stocks through a broker.
These large holders make profits off doing this but it doesn’t dictate the BTC price.
These large ETF funds care about AUM(assets under management) they make a fee off the funds they hold and the profits they make.
What their clients are doing is what matters, if their clients buy, they buy(hold).
✌️
