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Oct 31, 2024 • 7 Min Read

BTC ETFs See Massive Inflows: Is Crypto Native Capital Sidelined?

BTC ETFs saw over $2.2 billion in net inflows across all spot ETFs from Monday through Wednesday of this week—the largest three-day sum of inflows since the products launched in January—bringing the five-day moving average to north of $500 million. This is certainly impressive and speaks to the explosive breakout we have seen this week.

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We've also seen the annualized CME basis move expeditiously higher to above 12%. This is a good reminder that not all of the inflows into the ETFs are directional flows; a good chunk is likely due to funds putting on the popular basis trade—which at 12% is quite compelling for many. That said, the fact that the basis is moving higher means there's a bullish impulse in the futures market.

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Ultimately, it's safe to say that buyers have woken up over the past couple of weeks. However, the bullish move has been somewhat exclusive to BTC and some Solana-based alts, which raises some interesting questions about the current market dynamic.

If this rally to nearly all-time highs for BTC has seemed quiet, it's likely because a lot of investors in the crypto-native world are possibly still sidelined.

Based on stablec...

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