'Retail Isn't Key Driver Yet': Raoul Pal Reacts to Controversial Bitcoin ETF Data By U.Today
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Bitcoin Price Speculation: Hedge funds are speculated to be influencing the stagnant price of Bitcoin by taking record short positions on cryptocurrency via CME futures.
- Complex Strategy at Play: Deeper analysis reveals that hedge funds are engaging in market-neutral strategies like carry trades or basis trades, holding long positions in spot Bitcoin ETFs while shorting futures.
- Hedge Fund Activities: Top 80 holdings in spot Bitcoin ETFs, mainly controlled by hedge funds, show a focus on arbitrage opportunities rather than directional risks.
- Impact on Bitcoin's Price: Market-neutral strategies offset potential price spikes from significant inflows into spot Bitcoin ETFs by simultaneously shorting futures, limiting the impact on Bitcoin's price.
- Future Growth Potential: Despite current ETF inflows not significantly affecting Bitcoin's price, the potential for future growth is substantial, especially when retail investors enter the market.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
