From None.: 2024-06-12 12:00:27

Hedge funds are taking record short positions on Bitcoin via CME futures, but a deeper analysis reveals a more complex, market-neutral strategy involving long spot positions in ETFs and shorting futures to benefit from price convergence at expiration.

Top 80 spot Bitcoin ETF holdings are controlled by hedge funds, with flows driven by arbitrageurs rather than retail investors, according to financial analyst Raoul Pal.

Hedge funds focus on market-neutral strategies like arbitrage rather than taking directional risks, explaining why ETF inflows have not led to significant Bitcoin price spikes.

Retail investors have not yet impacted Bitcoin’s price due to the market-neutral strategies employed by hedge funds, but the potential for future growth remains substantial.

Read more at Investing.com: Raoul Pal Reacts to Controversial Bitcoin ETF Data By U.Today