Analysis: Bitcoin ETF inflows may be part of a non-directional arbitrage strategy, not necessarily a bullish bet

BlockBeats news, on June 10, despite the record high inflows of U.S.-listed spot Bitcoin ETFs, the spot price of Bitcoin continued to fluctuate in a narrow range. ETF inflows appear to be part of non-directional cash and arbitrage strategies and do not necessarily represent outright bullish bets.

Anonymous market observer CMS Holdings said on X: "The entity buys ETFs and sells [CME] futures to reduce the basis of some major markets, allowing the entity to realize a net profit, which is why ETF inflows are high, but the spot is relatively unchanged."

This strategy is often referred to as cash arbitrage, which aims to profit from the premium of the futures market relative to the spot market.