Bitcoin 
$108,770 ETFs listed in the United States recorded the second largest capital withdrawal this year, amounting to $516.4 million. According to Farside data, the last ten days witnessed the ninth net outflow day, reflecting investors’ cautious approach towards Bitcoin, which has been fluctuating within a narrow price range.
Current Status of Bitcoin ETFs
Last Tuesday, Bitcoin fell below $90,000 after exiting a three-month channel, dropping to around $86,050. This decline illustrates the concerns investors have regarding Bitcoin’s prolonged trading within a confined range.
According to Velo data, Bitcoin’s CME annualized basis value has decreased by 4%, marking the lowest level since the ETFs began trading in January 2024. Under cautious strategies, investors are taking long positions in the spot market while applying short positions in futures to seek returns from the price differential, indicating that this narrowing of returns might be one of the underlying reasons for the recent decline.
Cautious Strategy Applications
Market analysts suggest that this risk-adjusted strategy may prompt investors to close their positions, as returns fall below the 5% yield of U.S. 10-year Treasury bonds. According to Arthur Hayes, co-founder of Bitmex, many IBIT holders are positioning themselves to achieve higher returns between the ETF and CME futures.
Investors are reevaluating their positions based on the current risk-reward balance. The capital outflows from ETFs could lead to changes in strategic applications, as market volatility encourages cautious behavior among investors.
These developments indicate that the market’s volatile nature can significantly influence investor decisions. The current strategy and narrowing price differential may serve as critical indicators for upcoming movements, underscoring the necessity for investors to carefully monitor risk and reward factors and update their strategies accordingly.
