Hedge Funds Dominate US Bitcoin Spot ETF Inflows, Accounting for 67%, Says Raoul Pal

IconCryptoNewsTerminal Staff12 Jun, 2024

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Hedge Funds Dominate US Bitcoin Spot ETF Inflows, Accounting for 67%, Says Raoul Pal

Hedge funds are making waves in the US Bitcoin spot exchange-traded fund (ETF) market, accounting for a whopping 67% of total inflows, according to prominent macro investor Raoul Pal. Citing data from crypto analyst Tom Dunleavy of MV Capital Partners, Pal reveals that the top 80 holders of the US Bitcoin spot ETF are primarily hedge funds catering to institutional and individual investors. These funds collectively hold approximately $10.26 billion worth of the ETF, representing roughly 67% of the $15.42 billion in net inflows since the launch of spot ETFs. Pal notes that these hedge funds are primarily engaged in arbitrage strategies, rather than taking directional bets on the price of Bitcoin. This suggests that institutional investors are leveraging the ETF to capitalize on price discrepancies between the spot and futures markets. The dominance of hedge funds in the US Bitcoin spot ETF market highlights the growing institutional interest in cryptocurrency investments. As the asset class matures, it is likely to attract even more institutional capital, further legitimizing Bitcoin and other cryptocurrencies.

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