About two-thirds of net inflows into Bitcoin (BTC) exchange-traded funds (ETFs) could come from arbitrage, said Raoul Pal, CEO of Real Vision.
“If true, it shows that the vast majority of ETF flows are purely arbitrageur and that retail is not yet the main driver,” Pal said in a June 11 article, referring to the data provided by crypto analyst and MV Capital partner Tom Dunleavy. “. .
The data showed that the “top 80 holders” of Bitcoin ETFs in the United States were hedge funds whose capital came from a variety of institutional and retail investors.
The 80 companies collectively hold about $10.26 billion in Bitcoin ETF shares, or about two-thirds of the $15.42 billion in net inflows since the Bitcoin ETFs launched on Jan. 11, according to data from Farside Investors .
International hedge fund Millennium Management owns $1.94 billion worth of Bitcoin ETF shares, the largest of any company. On May 16, he distributed his Bitcoin ETF holdings among several issuers, holding shares in Bitwise, Grayscale, Fidelity, BlackRock, ARK and 21Shares ETFs.
However, others have disputed Pal’s claims, pointing out that, excluding Grayscale Bitcoin Trust (GBTC), the 10 US Bitcoin ETFs together hold $42 billion in assets under management, as well as short interest term on the CME.
Cryptocurrency trader Joseph B. said:
Pal claimed he knew these companies’ flows were primarily arbitrage, because they are “essentially what the big listed hedge funds do.” “They’re not really directional risk takers”: traders who make decisions based on the expected direction of the Bitcoin price.
about: Bitcoin ETFs Around the World Are in Focus as Bitcoin Price Surpasses $71,000
Arbitrage trading involves spotting short-term opportunities by finding discrepancies between the net asset value (NAV) of a spot Bitcoin ETF and the price of Bitcoin, the underlying asset.
“When you read this list, the only thing that comes to mind is that most of these people are not buy-and-hold investors,” added Carlos Zendejas, CEO of Deep Q Digital.
review: Become a digital crypto nomad in Bali like me: here’s how
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
