‘Retail is not yet the key factor’: Raoul Pal reacts to controversial Bitcoin ETF data

'Retail is not yet the key factor': Raoul Pal reacts to controversial Bitcoin ETF data

The cryptocurrency market has been rife with speculation about Bitcoin’s stagnant price, which some have attributed to hedge funds taking record short positions in cryptocurrencies via CME futures. However, deeper analysis reveals that a more complex strategy is at play.

The cryptocurrency market has been rife with speculation about Bitcoin’s stagnant price, which some have attributed to hedge funds taking record short positions in cryptocurrencies via CME futures. However, deeper analysis reveals that a more complex strategy is at play.

Advertisement

Therefore, it appears that hedge funds are engaging in market-neutral strategies, such as carry trades or basis operations, which involve holding long positions in spot Bitcoin ETFs while shorting futures. This strategy benefits from the price convergence of the futures and spot markets at contract expiration.

Related

Wed, 06/12/2024 – 09:30
Bitcoin or gold? Top Fidelity expert puts an end to speculation
HOT Stories
MicroStrategy Announces Big New Debt Offering to Increase Bet on Bitcoin (BTC)
MicroStrategy Announces Big New Debt Offering to Increase Bet on Bitcoin (BTC)
Ripple CTO Baffles XRP Army with Enigmatic X Post: Details
Ripple CEO names most important date for XRP holders
Ethereum (ETH) in critical condition, here’s why Bitcoin (BTC) can’t reach $70,000. Will XRP hit all-time low?

A recent review of the top 80 Bitcoin spot ETF holdings, which are predominantly controlled by hedge funds, supports this narrative. Commenting on the data, financial analyst. Raul Pal emphasized that most ETF flows are driven by arbitrageurs and not retail investors.

Pal noted that the core activities of listed hedge funds are predominantly market-neutral and focus on arbitrage opportunities rather than taking on directional risks.

This dynamic explains why significant inflows into Bitcoin spot ETFs have not caused an explosive rise in the coin’s price. Market-neutral strategies employed by hedge funds offset potential price spikes by simultaneously selling futures contracts.

As a result, retail investors, who typically drive steeper market moves, have yet to have a significant impact.

Related

Wed, 06/12/2024 – 07:46
Former Bitcoin Whale Surprises Major Exchange with $535 Million BTC Transfer

While current ETF inflows have not dramatically increased the price of Bitcoin, the potential for future growth remains substantial. The lack of significant retail investment suggests that the market may experience a new wave of growth when retail investors finally come in, providing additional stimulus for BTC’s value.

Leave a Reply

Your email address will not be published. Required fields are marked *

Best Exchanges
Buy, trade, and hold 600+ cryptocurrencies on Binance
Buy, trade, and hold 450+ cryptocurrencies on ByBit
Buy, trade, and hold 150+ cryptocurrencies on Kucoin
Buy, trade, and hold 100+ cryptocurrencies on BitFinex 
Buy, trade, and hold 150+ cryptocurrencies on CoinBase

Guru Investing is an independent source of information about investing , not controlled by any broker. All our reviews and guides are created honestly, according to the best knowledge and judgement of the members of our independent expert team; however, they are intended for informative purposes only and should not be construed as, nor relied upon as, legal advice. You should always make sure that you meet all regulatory requirements before making any financial operations . Copyright ©2024 Email for contact [email protected]
pornhd.com hindisexyporn.com kashmiri girls sex jayasex indaporn.info desi bhabi xxx xlnindia sexo-vids.com 1st time sex video たかはししょうこ動画 javfuck.mobi 真正中出し3本番 彩乃なな sex film sexy film xxxhindividoes.com xnxx indian teens
ano nga ba ang pangarap iwantmoreteleserye.com hello heart episode 3 reshma hot saree images nuporn.mobi xvidies com bihar chudai tubezaur.mobi heroine photo hot dasixx hardcoreporntrends.com ileana d'cruz hot photoshoot www.xxxsexvideo.com xbeegtube.mobi hindi movi
www sxe vidoes erohardcore.info boops sucking dehati fuck kitporn.info chuk chuk rail fuckcomix.com mojoporntube.net gujaratisexvidio probinsyano october 18 2021 full episode freeteleseryetv.net ang probinsyano july 14 2022 قصص سكس كرتون cmsextra.net سكس بنات تخينة