BTC Trade Volume Focuses on US Market Hours
The launch of BTC ETFs in the US has impacted the spot BTC market structure. Since their approval and launch in January, trade activity has clustered around US market hours, improving liquidity. Notably, the final hour before market close, when ETF net asset value is calculated, has seen a significant uptick in activity.
Hedge Funds Go Net Short on BTC Futures
The approval of spot BTC ETFs opened new trading strategies for institutional players. Hedge funds were net short on BTC futures on the CME during Q2. However, this doesn’t indicate bearishness on crypto. Instead, they likely engaged in basis trades. Basis trading exploits the price difference between two similar assets, such as BTC spot and futures contracts. Hedge funds are likely “long basis,” selling futures short while holding spot BTC, protecting against price moves and ensuring a specific sale price amid volatility.
