In recent weeks, U.S.-listed spot Bitcoin ETFs have seen a massive surge in investment—over $5.6 billion—thanks to a powerful rally that pushed $BTC from $75,000 to over $100,000. This isn’t your typical institutional arbitrage play; the data reveals something much more decisive: bold, bullish directional bets.
According to SoSoValue, April alone saw $2.97 billion in inflows, with another $2.64 billion pouring in so far this month. Since their January 2024 launch, these ETFs have now raked in over $41 billion.
Historically, institutions have used these ETFs for market-neutral strategies like “cash and carry” arbitrage—buying the spot ETF while shorting CME futures to pocket the premium. But current inflows tell a different story.
CFTC's weekly Commitment of Traders (COT) data shows leveraged funds slashing their net shorts from 17,141 contracts in early April to just 14,139. If arbitrage were driving the flows, shorts would have increased. Instead, the trimming of shorts signals strong directional conviction.
As Imran Lakha of Options Insight points out, “CFTC data shows leveraged funds didn't significantly increase short positions, indicating most flows were directional bets, not arbitrage.”
Bottom line? Big money is backing Bitcoin's upward momentum with confidence—using ETFs not just for hedging, but to ride the bullish wave.
At the time of writing, $BTC
Bitcoin trades around $102,700, per CoinDesk.