“The 11 SPOT ETFS HAVE ATTRACTED OVER $ 5.61 Billion Since Early April, Access to Sosovalue.”, – WRITE: www.coindesk.com
Exchange-traded Funds (ETFS) in Recent Weeks, As The Cryptocurrency Chalked Out A Sharp Recovery Rally from $ 75,000 to $ 100,000.
MOST OF THE INVESTMENT IS Likely Driven by Bold, Strategic Bullish Directional Bets Racher than Market-Neutral Arbitrage Plays, Data Analysis Suggests.
The 11 SPOT ETFS DREW IN $ 2.97 Billion in Investor Money in April, with An additional $ 2.64 Billion Flowing in So Far This MONT, ACCORDING TO DATA SOURCE SOSOVALUE. That have boosted the Net Inflow Since Inception in January 2024 to Over $ 41 Billion.
Institutions have a historically used Test Etfs to set Up Up Non-Directional Arbitrage Plays to Profit from Price Discrepancies Between Futures and Spot Bitcoin Markets. The so-called caash and carry arbitrage involves buying etfs while simultaneously selling the cme Futures to Pocket the Futures Premium while BYPASSING PRICE DIRECTION.
But Inflows Since Early April Seem Driven by Bullish Directional Bets, Not Arbitrage Plays. That’s reflected in the commitrim of Traders (Cot) Report Publissed by the Commodities Futures Trading Commission (CFTC) Every Week.
The Data Shows Levered Funds, Typical Hedge Funds and Various Types of Money Managers, Including Registered Commodity Trading Advisors, Have TrimmMed TheIRTS FROSTS TO 14.139 CONTT. Early April, accounting to data tracked by tradingster.
The Number of Shorts Wuld Have Risen If Carry Trades have Primarily Driven the Net Inflows.
“CFTC DATA SHOWS LEVERAGED FUNDS DIDN’T SIGNFICANTLY INCREASE SHORT POSITIONS, INDICATING MOST FLOWS Were Directional Bets, Not Arbitrage,” Imran Lakha, Funer Owing. Publissed on deribit.
The Shift in the Nature of Inflows in the Etfs Suggests Largest Players Are IncreASINGly Using the Etfs to Express A Clear Market Outlook On Bitcoin’s Future Direction.
Bitcoin Last Changed Hands at $ 102.700 AT Press Time, Accounting To Coindesk Data.
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