Glassnode: Institutional spot trading strategies reduce immediate upward pressure on spot prices
2024-06-12 13:18:55
On June 12th, Glassnode analysts said on Wednesday that a major factor affecting the demand side pressure of US spot ETFs is the adoption of cash arbitrage strategies by institutional traders. Since traders buy Bitcoin spot and immediately hedge by selling Bitcoin futures, this can reduce the immediate upward pressure on the spot price. This spot arbitrage trading structure appears to be a significant source of demand for ETFs. ETFs are used as a tool to gain long spot exposure, at the same time as net short positions in Bitcoin on the CME Group futures market are increasing.
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