When the price is high, the market sentiment is better. The more people in the futures market are eager to go long, the more likely the premium will rise;

Part of the funds entering IBIT are for arbitrage of high premiums, that is, when buying BTC, short orders of the same amount will be opened in CME at the same time, so the price has little impact;

For example, on Friday, IBIT had a net inflow of US$110 million, and the net inflow of ETFs totaled about US$500 million. At the same time, CME futures positions also increased by US$500 million. Large net inflows are definitely a good thing, but the net buying of US$500 million only brought less than 1% increase to BTC, which means that part of the US$500 million was used for arbitrage;

If it were me, I would definitely choose risk-free returns. ETF issuers can earn management fees steadily in this process, and institutional clients can earn premium income steadily. BTC's high volatility and emotional market have become a natural arbitrage market;

I calculated yesterday that with BlackRock's fund management scale, the management fee of BTC spot ETF can bring it a net income of more than US$50 million per year, and institutional arbitrage funds can earn an annualized ultra-low risk return of 60% in this process.

Where does this money come from?

Gathered from the hands of thousands of emotional traders in the market. #SEC主席重申比特币非证券 #你有多少HMSTR？ #美联储11月降息预期升温 #美国二季度核心PCE符合预期 #美国8月核心PCE创4月以来新高