Glassnode: Institutional spot trading strategies can alleviate immediate upward pressure on spot prices

ChainCatcher news, according to The Block, Glassnode analysts stated on Wednesday that a major factor influencing the demand-side pressure for U.S. spot ETFs is the adoption of cash-and-carry arbitrage strategies by institutional traders. As traders buy Bitcoin spot and immediately hedge by selling Bitcoin futures, this can alleviate the immediate upward pressure on spot prices. This spot arbitrage trading structure appears to be an important source of ETF demand. ETFs are used as a tool to gain long spot exposure, while at the same time, the net short positions in Bitcoin on the Chicago Mercantile Exchange's futures market are continuously increasing.

Glassnode analysts stated: "Futures market data shows that open interest has stabilized above $8 billion, having previously reached a historical high of $11.5 billion in March 2024. This may indicate that more and more traditional market traders are adopting cash-and-carry arbitrage strategies."