The latest weekly report from cryptocurrency trading platform Bitfinex shows that the U.S. spot Bitcoin ETF lost more than $100 million per trading day last week, with a total outflow of $544.1 million.
Analysts at the trading platform said that the outflow was a combination of weak ETF investors responding to short-term negative news and the unwinding of basis/capital arbitrage caused by negative funding rates. One of the signs of the unwinding of basis/capital arbitrage is the sharp drop in open interest in Bitcoin futures on the Chicago Mercantile Exchange (CME) and other trading platforms. The reduction in positions coincides with the negative funding rates on multiple exchanges in the past week, and also coincides with ETF net outflows, indicating a significant reduction in financing arbitrage transactions related to ETF fund flows. In view of this, it is important to recognize that not all ETF fund outflows can be interpreted as spot sales. As the short-term trend of crypto assets remains weak, the current market sentiment remains bearish. (CryptoPotato)