ChainCatcher news, former Goldman Sachs executive and founder of macro research firm Real Vision, Raoul Pal, stated on social media: "One day, people will realize that the biggest users of Bitcoin ETFs and most of the trading volume come from hedge funds, which are arbitraging between spot and futures, perpetual contracts. The inflow of funds is mainly not directional, only marginally impactful."Raoul Pal believes that most of the funds flowing into Bitcoin ETFs are not based on investors betting on the long-term rise and fall of Bitcoin (i.e., directional investment). Instead, this capital primarily comes from hedge funds using ETFs for short-term arbitrage, aiming to profit from price differences rather than relying on the price movement of Bitcoin itself, and most of the activity does not reflect the broader market sentiment towards Bitcoin's price trends.

According to ChainCatcher news and the official announcement, Binance Wealth Management has launched a smart arbitrage service. Users can earn funding fees by hedging positions in perpetual contracts and the spot market, aiming to help users profit from funding rate payments while minimizing price volatility risks. The service includes leveraged funding rates, delta-neutral strategies, and risk management features. Users can subscribe to the smart arbitrage service through the Binance Wealth Management platform. During the promotional period, subscribing with USDT can yield an annualized return of up to 17.18%. The promotional period is from October 14, 2024, 06:00 (UTC) to October 27, 2024, 23:59 (UTC).

ChainCatcher news, according to the official message from the SlowMist security team, a new type of arbitrage MEV bot scam has recently been discovered and reported, urging all users to avoid clicking on unknown links or running suspicious code. If scammers claim that the code was generated by ChatGPT, users can use tools like ChatGPT or Claude to review the code and check for any malicious behavior.It is reported that many users have recently used ChatGPT-related arbitrage bots and invested funds in pursuit of passive income, but after following the scammers' instructions, they found their funds stolen. Users should remain vigilant, carefully check for traps, and protect their assets from harm.

ChainCatcher news, Matrixport released a chart stating that as implied volatility remains low, Bitcoin traders need to establish corresponding positions to prepare for a potential bull market that may arise from Trump's victory. Bitcoin options will expire on November 8, 2024, but the market has not shown extreme positioning, indicating that traders are cautious about the election results. However, the strike prices of $65,000 and $70,000 suggest that many traders are anticipating a market rebound.The trading volume in the Bitcoin options market this year has ranged between $42 billion and $71 billion, gradually replacing the underperforming crypto stocks since the Bitcoin halving in April 2024, becoming a more favored leveraged tool among traders. Additionally, although MicroStrategy's current stock price is higher than the value of its held Bitcoin, holding MicroStrategy shares has become an alternative option for gaining direct exposure to Bitcoin.At the beginning of this year, the macroeconomic situation improved, and Bitcoin prices rebounded at one point, but as both market structure and liquidity driving factors weakened, a pullback occurred.Trump's victory could bring positive news for Bitcoin, but if the Federal Reserve adopts a tightening monetary stance to counteract the excessive economic stimulus from Trump's policies, the rise will face resistance. During this pre-election period, traders looking to profit in the short term may consider using call option arbitrage strategies to manage risk and capture upside gains.

ChainCatcher message, Shen Yu (@bitfish1) posted on social media that with further interest rate cuts, a large-scale Defi arbitrage trading is expected to unfold, and the pattern of government bonds as the main source of Defi returns may be broken, with a reversal imminent.

ChainCatcher news, Morgan Stanley strategist Michael Wilson believes that if the Federal Reserve significantly cuts interest rates this month, the U.S. stock market may face the risk of further unwinding of yen carry trades.He pointed out that if the initial rate cut exceeds 25 basis points, it could support the yen. This would prompt yen traders to withdraw from U.S. assets after domestic interest rates rise, repeating the pattern that caused turmoil in global markets last month. "The unwinding of yen carry trades may still be a lurking risk factor," Wilson wrote in a report. "A rapid decline in U.S. short-term interest rates could further strengthen the yen, prompting a negative reaction from U.S. risk assets." (Jin Shi)

ChainCatcher news, according to monitoring by Lookonchain, a whale investor skilled in arbitrage has repeatedly sold at the low points of ETH prices over the past month. This investor sold a total of 19,667 ETH in the past month, worth approximately 47.3 million dollars. The whale obtained ETH through MEV bot arbitrage, but performed poorly in timing the sales, almost always selling at market lows.

ChainCatcher news, the cryptocurrency research company Matrixport released an analysis report stating that the market tends to attribute the sharp decline in Bitcoin to the unwinding of yen carry trades.Many financial market participants who borrowed yen to invest in high-yield assets are now reversing their positions, with Bitcoin becoming a victim in this process. The unexpected interest rate hike by the Bank of Japan, coupled with market expectations for a rate cut by the Federal Reserve, has increased uncertainty around central bank policies, leading to deleveraging in the financial system. According to some traders, this is the main reason for the drop in Bitcoin prices.

ChainCatcher news, according to official sources, the open-source DeFi protocol ecosystem Bancor has announced the expansion of the permissionless arbitrage trading bot Arb Fast Lane to the Linea network, which is now officially live, bringing the first of its kind arbitrage trading bot to Linea.It is reported that Arb Fast Lane uses markets created by the licensed Carbon DeFi deployment and its surrounding infrastructure to identify and execute complex arbitrage trades.

ChainCatcher news, according to on-chain analyst Yu Jin's monitoring, a whale bought 6.313 million CRV on-chain 1 hour ago, then transferred it to Binance for arbitrage, gaining a profit of $160,000 (10%).Affected by the liquidation of Curve founder Michael Egorov's lending position, the CRV price on-chain is lower than on CEX. The whale withdrew 1.5 million USDT from Binance to buy 6.313 million CRV on-chain at an average price of $0.237, and then transferred it to Binance at a price of $0.263.

ChainCatcher news, according to Cointelegraph, Real Vision CEO Raoul Pal stated that about two-thirds of the net inflows for Bitcoin spot ETFs may come from arbitrage trading.Data shows that the "top 80 holders" of U.S. Bitcoin ETFs are hedge funds, with funds coming from various institutions and individual investors.Raoul Pal said, "If this is correct, it indicates that the vast majority of ETF flows are just arbitrageurs, and retail is not yet a key driver."

ChainCatcher news, according to CoinDesk, despite the inflows into Bitcoin spot ETFs listed in the U.S. reaching an all-time high, the Bitcoin spot price continues to fluctuate within a narrow range. The ETF inflows seem to be part of a non-directional cash and arbitrage strategy, and do not necessarily represent a thorough bullish bet.Anonymous market observer CMS Holdings stated on X: "Entities buy the ETF and sell 'CME' futures to reduce the basis in some major markets, allowing entities to realize net profits, which is also why ETF inflows are high, but the spot remains relatively unchanged."It is reported that this strategy is commonly referred to as cash arbitrage, aimed at profiting from the premium of the futures market relative to the spot market.

ChainCatcher news, according to DL News, hedge fund giant Millennium previously disclosed a valuable $2 billion Bitcoin spot ETF, which includes $844 million in BlackRock's IBIT and $806 million in Fidelity's FBTC shares.Two institutional traders indicated that Millennium may deploy a "basis trading" strategy. Millennium is not betting on a further increase in Bitcoin prices, but may be arbitraging between the spot and futures prices of Bitcoin on the CME.In other words, Millennium is not necessarily investing in the ETF because they like Bitcoin, but rather profiting from market inefficiencies. The aforementioned traders do not work at Millennium but have relevant experience at Wall Street trading firms.It is reported that basis trading is a financial term used to describe the difference between the spot price and the futures price of a specific commodity.Assuming the trading price of Bitcoin is $70,000, but the corresponding futures contract price on the CME is $77,000, then the price difference between the two is 10%. If institutional traders believe that the price of Bitcoin will catch up to the futures contract price, they will buy shares of the Bitcoin spot ETF and sell Bitcoin futures contracts on the CME; if they believe that the futures contract price will drop until it reaches the spot price, they will sell Bitcoin in the spot market and buy Bitcoin futures contracts on the CME. This way, they can take advantage of the 10% price difference between the spot and futures prices. However, if they bet on the first scenario and the second scenario occurs, or vice versa, they may still incur losses.