On May 19, 2025, U.S.-based spot Bitcoin Exchange-Traded Funds (ETFs) witnessed a massive inflow of $667.4 million — the largest daily inflow since May 2. This surge signals a strong return of institutional interest in Bitcoin amid a stable price environment and attractive arbitrage opportunities. $BTC

BlackRock’s iShares Bitcoin Trust (IBIT) led the charge, receiving $306 million in net inflows on the day. This brings IBIT’s total net investment to approximately $45.9 billion, further cementing its place as a dominant player in the crypto ETF market.

One of the main drivers behind this renewed interest is the growing appeal of the “basis trade.” This strategy involves buying spot Bitcoin through ETFs and simultaneously selling Bitcoin futures contracts, profiting from the price difference between the two. Currently, the annualized yield from this trade is nearing 9% — an enticing return for hedge funds and institutional traders looking for low-risk profit in a relatively flat crypto market.

Bitcoin’s price has remained above $100,000 for the past 11 consecutive days, adding to investor confidence and creating a stable environment for strategic trades like the basis trade. With such consistent pricing and a rising basis spread, market participants are capitalizing on the opportunity to generate passive yield.

The recent inflows and trading strategies reflect a broader trend: institutional investors are once again showing strong confidence in Bitcoin’s long-term value. As ETFs continue to provide a regulated, accessible path to crypto exposure, and with arbitrage opportunities alive and well, Bitcoin is regaining momentum in traditional financial markets.

If this trend continues, we could see even more significant price movements and increased adoption from mainstream investors in the months ahead.

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