The US spot Bitcoin Exchange-Traded Funds (ETFs) have been witnessing a historic run of inflows, marking 17 consecutive days of net additions. On a particularly notable Tuesday, these ETFs observed inflows totaling a staggering $886.6 million, ranking it as the second-highest single-day influx since their introduction.
This was followed by another significant day of inflows yesterday, amounting to $488.1 million, with notable contributions from major financial players like Fidelity ($220.6 million), Blackrock ($155.1 million), and Ark ($71.4 million). Despite these hefty capital injections, the price of Bitcoin has demonstrated a relatively subdued response, inching from $68,000 to $71,000 since the beginning of the week.
The muted price movement in the face of substantial ETF inflows has puzzled many market participants and analysts. Typically, such inflows are expected to exert a stronger upward pressure on Bitcoin prices. However, the observed price dynamics suggest that other counteracting factors might be at play.
Why Is The Bitcoin Price Not Going Higher?
Crypto trading analytics platform The Kingfisher offered an explanation via a post on X, suggesting that a carry trade strategy might be influencing the price dynamics. According to their analysis, “The BTC ETF inflows didn’t affect the price as much as you hoped it would? It might be due to a carry trade being loaded up. Short Futures + Buy Spot/ETF.”
Related Reading
A carry trade in this context involves shorting Bitcoin futures while simultaneously buying spot Bitcoin or Bitcoin ETF shares. This strategy can hedge against potential price volatility and exploit discrepancies between futures prices and spot prices.
JJ the Janitor (@JLabsJanitor) further elaborated on the strategy’s mechanics. He drew parallels with behaviors visualized on the PANDA Terminal charts, explaining, “When big boys want BTC spot filled they sell futures contracts to bring price into bids. When they’re filled + ready to let it rip they close those shorts, hence the inverse correlation on True Open Interest (OI).”
His remarks hint at strategic market manipulations that, while legal, blur the lines between savvy investment tactics and potential ethical concerns. His follow-up tweet, “Market manipulation or savvy investment strategy….what’s the difference?” challenges the narrative by questioning the ethical implications of such strategies.
Related Reading
The discussion prompted further scrutiny from the crypto community. X user Sahra critiqued the practical implementation of the carry trade, noting, “Carry trade should suppress funding rates naturally. Long spot pressure against the perpetual should in theory cause perpetual rates to drop (all else being equal) as perpetual would begin to lag spot. Everything else makes sense, but these rates are far too low to justify a carry IMO.”
This comment points to the complexities of carry trades, where expected outcomes like suppressed funding rates are not aligning with market observations, suggesting that other forces might be influencing the market.
The Kingfisher responded to Sahra’s skepticism, acknowledging the anomaly: “That’s right, the funding remains fairly positive though. This suggests that while a carry trade could be in play, it’s not the dominant force in the market. Other factors, like bullish sentiment or other buying pressures, might be offsetting the expected downward pressure on funding rates from the carry trade.”
At press time, BTC traded at $70,803.
Featured image created with DALL·E, chart from TradingView.com
The US spot Bitcoin Exchange-Traded Funds (ETFs) have been witnessing a historic run of inflows, marking 17 consecutive days of net additions. On a particularly notable Tuesday, these ETFs observed inflows totaling a staggering $886.6 million, ranking it as the second-highest single-day influx since their introduction.
This was followed by another significant day of inflows yesterday, amounting to $488.1 million, with notable contributions from major financial players like Fidelity ($220.6 million), Blackrock ($155.1 million), and Ark ($71.4 million). Despite these hefty capital injections, the price of Bitcoin has demonstrated a relatively subdued response, inching from $68,000 to $71,000 since the beginning of the week.
The muted price movement in the face of substantial ETF inflows has puzzled many market participants and analysts. Typically, such inflows are expected to exert a stronger upward pressure on Bitcoin prices. However, the observed price dynamics suggest that other counteracting factors might be at play.
Why Is The Bitcoin Price Not Going Higher?
Crypto trading analytics platform The Kingfisher offered an explanation via a post on X, suggesting that a carry trade strategy might be influencing the price dynamics. According to their analysis, “The BTC ETF inflows didn’t affect the price as much as you hoped it would? It might be due to a carry trade being loaded up. Short Futures + Buy Spot/ETF.”
Related Reading
A carry trade in this context involves shorting Bitcoin futures while simultaneously buying spot Bitcoin or Bitcoin ETF shares. This strategy can hedge against potential price volatility and exploit discrepancies between futures prices and spot prices.
JJ the Janitor (@JLabsJanitor) further elaborated on the strategy’s mechanics. He drew parallels with behaviors visualized on the PANDA Terminal charts, explaining, “When big boys want BTC spot filled they sell futures contracts to bring price into bids. When they’re filled + ready to let it rip they close those shorts, hence the inverse correlation on True Open Interest (OI).”
His remarks hint at strategic market manipulations that, while legal, blur the lines between savvy investment tactics and potential ethical concerns. His follow-up tweet, “Market manipulation or savvy investment strategy….what’s the difference?” challenges the narrative by questioning the ethical implications of such strategies.
Related Reading
The discussion prompted further scrutiny from the crypto community. X user Sahra critiqued the practical implementation of the carry trade, noting, “Carry trade should suppress funding rates naturally. Long spot pressure against the perpetual should in theory cause perpetual rates to drop (all else being equal) as perpetual would begin to lag spot. Everything else makes sense, but these rates are far too low to justify a carry IMO.”
This comment points to the complexities of carry trades, where expected outcomes like suppressed funding rates are not aligning with market observations, suggesting that other forces might be influencing the market.
The Kingfisher responded to Sahra’s skepticism, acknowledging the anomaly: “That’s right, the funding remains fairly positive though. This suggests that while a carry trade could be in play, it’s not the dominant force in the market. Other factors, like bullish sentiment or other buying pressures, might be offsetting the expected downward pressure on funding rates from the carry trade.”
At press time, BTC traded at $70,803.
Featured image created with DALL·E, chart from TradingView.com
![Optimism [OP]: Is a 7.1% pump enough for a sustained rally](https://coininsights.com/wp-content/uploads/2023/10/OPUSDT_2023-10-21_11-15-08-120x86.png)
clomiphene medication buying cheap clomiphene tablets clomid calculator how can i get generic clomiphene tablets how to get clomiphene no prescription how can i get generic clomiphene can i order clomid pills
More content pieces like this would urge the web better.
This is a topic which is forthcoming to my heart… Many thanks! Unerringly where can I upon the contact details in the course of questions?
generic azithromycin 500mg – ciprofloxacin 500mg tablet buy flagyl 400mg for sale
semaglutide without prescription – rybelsus 14 mg sale periactin buy online
cost propranolol – cheap clopidogrel 150mg order methotrexate 5mg without prescription
amoxicillin pill – order amoxicillin online cheap brand combivent 100 mcg
where to buy zithromax without a prescription – buy nebivolol no prescription nebivolol order online
order augmentin 625mg online cheap – atbioinfo ampicillin online buy
order nexium – https://anexamate.com/ purchase esomeprazole online
purchase medex generic – https://coumamide.com/ order cozaar 25mg sale
mobic 7.5mg us – https://moboxsin.com/ meloxicam brand
prednisone 10mg sale – https://apreplson.com/ order deltasone 20mg pill
cheapest ed pills – online ed medications over the counter ed pills that work
amoxicillin brand – purchase amoxil online cheap buy amoxil cheap
buy fluconazole generic – https://gpdifluca.com/ forcan price
cenforce canada – https://cenforcers.com/# cenforce for sale online
cialis free trial voucher – click how long does cialis take to work 10mg
buy generic cialiss – https://strongtadafl.com/ purchase generic cialis