Bitcoin crash triggered by erosion of ETF cash and carry trade — Analyst
The arrival of institutional investors has been both a blessing and a curse for long-term Bitcoin holders.
Since reaching all-time highs on Jan. 20, Bitcoin’s price has been suppressed by hedge funds exploiting a low-risk yield trade involving spot exchange-traded funds (ETFs) and CME futures, signaling once again that institutional adoption of crypto assets isn’t a one-way street.
This is the general takeaway of analyst Kyle Chassé, who dissected the latest Bitcoin (BTC) price crash in a thread on the X social media platform.
“For months, hedge funds were exploiting a low-risk yield trade using BTC spot ETFs & CME futures,” said Chassé. Now, this cash and carry trade is “imploding,” he said.
