Bitcoin ETFs bleed $2.6B – Why Arthur Hayes says ‘investors don’t like BTC’
The post Bitcoin ETFs bleed $2. 6B Why Arthur Hayes says ‘investors don’t like BTC’ appeared com. Key Takeaways Why is BlackRock leading ETF outflows? Per Hayes, hedge funds are liquidating their BTC positions as the basis trade declines. What’s the pivot he sees for the market? According to him, an improvement in the liquidity conditions in early December could juice risk assets and drive BTC to $200k. Bitcoin’s [BTC] institutional flows have remained negative for the fourth week in a row, further accelerating the ongoing sell-off. So far in November, $2. 59 billion has left the U. S. spot BTC ETFs, with half of the outflows ($1. 26 billion) driven by BlackRock’s IBIT investors. It involves buying spot BTC ETFs and shorting on the asset on CME to capture the spread (basis trade). However, now that the basis trade is no longer attractive, they have hedge funds with spot BTC ETFs that have exited their positions, noted Hayes. And with it, the hedge fund-led ETF outflows intensified, further spooking retail investors, added Hayes. “Now retail believes these same investors don’t like Bitcoin and creates a negative feedback loop that influences them to sell, which decreases the basis, finally causing more institutional investors to sell the ETF.” Treasury demand and liquidity shifts Additionally, the demand from BTC treasuries has also faded, further reinforcing the short-term concern that major players are taking a wait-and-see approach. Hayes highlighted that the dollar liquidity has also been withdrawn and could be re-injected by December when the Fed ends Quantitative Tightening (QT). Continue reading Bitcoin ETFs bleed $2.6B – Why Arthur Hayes says ‘investors don’t like BTC’
