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Bitcoin ETF: Short-term investment up 55%!

Thu 13 Jun 2024 ▪ 3 min of reading ▪ by Eddy S.
Getting informed Regulation Crypto

Bitcoin investments are experiencing remarkable growth, particularly among short-term holders! This is in response to the growing demand for Bitcoin exchange-traded funds (ETFs). This trend is supported by the increased activity of BTC whales, signaling a potential bullish trend.

Bitcoin ETF Crypto

Bitcoin ETF: Short-Term Investment Soars by +50%!

Since the launch of Bitcoin ETFs in January, Bitcoin holdings among short-term investors have skyrocketed! Increasing by about 55%, from 2.2 million BTC to over 3.4 million BTC in just a few months. This rise indicates growing interest from newcomers who prefer the ease and accessibility of investments through ETFs.

Bitcoin whales have been increasingly active, buying substantial amounts of BTC. Despite a market correction in March, the appetite for the leading crypto remained robust, with only a slight reduction in holdings to 3.3 million BTC. Market analysts point out that the rapid accumulation via ETFs is a clear indication. They highlight the growing recognition of cryptocurrencies as credible assets by institutional and retail investors.

The Strategy Used by Investors!

Bitcoin ETFs benefit from a popular trading strategy in crypto, known as “basis trade.” This strategy consists of exploiting the price gap between an asset and its corresponding derivatives. In the case of Bitcoin, traders buy BTC or Bitcoin ETFs and short sell BTC futures contracts while waiting for spot and futures prices to converge.

However, this strategy is not as attractive as it was a few months ago. The basis, or the price difference between Bitcoin and BTC futures contracts, was in the range of 25% to 30% at the launch of ETFs in January. However, the basis is now in the range of 7% to 9%.

In conclusion, the enthusiasm for Bitcoin ETFs and the confidence of whales in Bitcoin indicate a positive dynamic for investments in the short term in crypto. As the market continues to evolve, these developments could well shape the future of BTC trading and investment.

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Eddy S. avatar
Eddy S.

The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.