Withdrawing Money from ETFs; Out of Fear or Strategy

You’ve probably seen the headline “Heavy Institutional Bitcoin Selloff” more and more these days!

On paper, it’s true that a large amount of Bitcoin is being withdrawn from ETFs, partly because some traditional stock market players are withdrawing from the Bitcoin market.

But the bulk of this Bitcoin sell-off is actually due to shorting CME contracts.

In fact, a large portion of institutional players were earning money through Neutral Trade or collecting the premium of their short contracts in the derivatives market and were buying ETFs to cover the risk of these contracts.

These days, as the excitement in the derivatives market has subsided and the income from these transactions has decreased, these players are closing both sides of this deal.