VanEck： Bitcoin ETF's massive capital outflow may be due to hedge fund's termination of basis trading strategy

Odaily Planet Daily reported that the Bitcoin ETF has experienced a continuous outflow of approximately $2.1 billion for six days, setting a record for the longest outflow period since June last year. Matthew Sigel, head of digital asset research at VanEck, believes that the record breaking outflow of funds may stem from hedge funds breaking a popular strategy called "basis trading," which exploits price differentials between spot and futures markets to profit. Some funds use ETFs to profit from cryptocurrency volatility or hedge short positions in derivatives, "he explained." This strategy involves buying Bitcoin spot (usually through ETFs) while shorting Bitcoin futures to lock in low-risk returns. However, the profits from this trading have recently collapsed, greatly reducing its appeal. Therefore, hedge funds that use ETFs for this trading may have already closed out, leading to large redemptions