Matrixport： At present, the selling pressure of ETFs seems to have been suspended, and hedge funds may reassess arbitrage opportunities in late March

On March 3rd, Matrixport analysis pointed out that since the launch of the Bitcoin ETF in January 2024, the outflow of funds this month has reached a new high, which may be related to hedge funds closing basis trades (long ETFs, short futures). This trend is consistent with the decrease of $8 billion in open contracts for Bitcoin futures on the Chicago Mercantile Exchange after the Federal Reserve's FOMC meeting in December 2024, which is more than 20% of the total inflow of ETF funds. In addition, the expiration and delivery of February futures contracts may also be a source of selling pressure, but this factor has now been digested by the market. Matrixport believes that as the impact gradually weakens, hedge funds may reduce ETF selling and reassess arbitrage opportunities in late March. At present, the selling pressure of ETFs seems to have temporarily stopped.