Bitcoin crash triggered by erosion of ETF cash and carry trade — Analyst

The arrival of institutional investors has been both a blessing and a curse for long-term Bitcoin holders.

Since reaching all-time highs on Jan. 20, Bitcoin’s price has been suppressed by hedge funds exploiting a low-risk yield trade involving spot exchange-traded funds (ETFs) and CME futures, signaling once again that institutional adoption of crypto assets isn’t a one-way street.

This is the general takeaway of analyst Kyle Chassé, who dissected the latest Bitcoin (BTC) price crash in a thread on the X social media platform. 

“For months, hedge funds were exploiting a low-risk yield trade using BTC spot ETFs & CME futures,” said Chassé. Now, this cash and carry trade is “imploding,” he said.

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