U.S.-listed spot bitcoin exchange-traded funds (ETFs) reported a significant increase in inflows, surpassing the previous year's figures by over 175%. From January 13 to February 5, 2025, these funds attracted $4.4 billion, a substantial rise from the $1.6 billion recorded during the same period in 2024.
This surge in investor interest has contributed to the spot bitcoin ETFs becoming one of the most successful ETF launches in history, amassing over $40.6 billion in total net inflows. The BlackRock (NYSE:BLK) iShares Trust (IBIT) alone has seen a total of $40.7 billion in net inflows. However, the overall figure for all 11 spot BTC ETFs remains at $40.6 billion, as Grayscale's GBTC experienced outflows amounting to $21.9 billion.
The question of whether these inflows indicate a bullish market sentiment or are part of a basis trade strategy remains. In a basis trade, investors take a long position in the spot market while selling futures contracts at a premium. Presently, such trades offer investors a chance to capture a premium of around 10%, a gap expected to narrow as the spot price aligns with the futures contracts at expiration.
Data from Glassnode reveals a decline in open interest at the Chicago Mercantile Exchange (CME), the primary venue for these trades, from 180,099 BTC to 168,549 BTC year-to-date. This decrease suggests that the recent inflows into spot bitcoin ETFs may not be predominantly driven by basis trades.
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