According to ChainCatcher, despite record high inflows into U.S.-listed Bitcoin spot ETFs, Bitcoin spot prices continue to fluctuate in a narrow range. ETF inflows appear to be part of non-directional cash and carry strategies and do not necessarily represent outright bullish bets.
“The entity buys ETFs and sells ‘CME’ futures to lower the basis in some major markets, which nets the entity a net profit, which is why ETF inflows are high but spot is relatively unchanged,” said anonymous market observer CMS Holdings.
This strategy, often referred to as cash arbitrage, seeks to profit from the premium of the futures market relative to the spot market.
