Bitcoin (BTC) Price Muted Due to Shorting, Hedging - But Institutional Interest Grows

IconCryptoNewsTerminal Staff11 Jun, 2024

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Bitcoin (BTC) Price Muted Due to Shorting, Hedging - But Institutional Interest Grows

Bitcoin (BTC) has seen muted price action despite the launch of a spot ETF in the United States. According to Crypto Briefing, this is likely due to traders taking advantage of a cash-and-carry strategy, where they buy Bitcoin via the new ETF while shorting CME futures. Hedge funds have also amassed a large short position in BTC, effectively neutralizing the inflows into the physical ETF. However, despite the muted price action, the amount of BTC flowing into large institutions continues to grow every day, in tandem with the ETF trading volume. This suggests that institutional interest in Bitcoin remains strong, even if the price is not currently reflecting this.

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