[Analysis] "Crypto asset ETPs see record-high outflows of 3.8 trillion won this week... selling pressure is stabilizing"
Summary
- This week saw record-high outflows of approximately 3.8 trillion won from digital asset ETPs and ETFs.
- James Butterfill stated that the selling pressure on Bitcoin and other cryptocurrencies is entering a stabilization phase.
- Analysis suggests that as arbitrage profits have rapidly decreased, hedge funds have liquidated their positions, resulting in capital outflows.
Analysis suggests that despite massive fund outflows from digital asset Exchange Traded Products (ETPs) and Exchange Traded Funds (ETFs) this week, selling pressure is gradually stabilizing.
On the 28th, James Butterfill, Head of Research at CoinShares, stated via X (formerly Twitter), "This week, Bitcoin and other cryptocurrency ETPs and ETFs saw record outflows of $2.6 billion (approximately 3.7973 trillion won)," but added that "basis trade liquidations and panic selling are stabilizing."
Meanwhile, basis trade refers to an arbitrage strategy that utilizes the basis (price difference) between spot and futures prices. Recent analysis suggests that as arbitrage profits have rapidly decreased, hedge funds have liquidated their positions, leading to increased capital outflows from ETFs.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
