Rally

Shift

United

Bitcoin

Chainlink

<ul>
 <li>Now there’s an easier method for them to do it locally with spot bitcoin ETFs, Nolan noted.</li>
 <li>There has been a significant outflow of capital from the four biggest European bitcoin ETPs.</li>
</ul>
Since spot BTC ETFs were introduced in the US, one analyst has seen an uptick in <a href="https://thenewscrypto.com/can-bitcoin-cross-45k-amidst-bearish-trends/" target="_blank" rel="noopener noreferrer nofollow">bitcoin</a> exchange-traded fund outflows from Europe. This change in the market, according to <a href="https://coinshares.com/" target="_blank" rel="noopener noreferrer nofollow">CoinShares</a> Research Associate Luke Nolan, exemplifies a pattern in which American institutional traders are presumably shifting their focus to the newly authorized spot bitcoin ETFs.
Lowered costs and recognition of the brands seem to be important factors in attracting investors so far, with <a href="https://thenewscrypto.com/blackrocks-spot-bitcoin-etf-hits-1-billion-aum-in-first-week/" target="_blank" rel="noopener noreferrer nofollow">BlackRock</a> and Fidelity pulling in the majority of the inflows since the start.
<h3 class="wp-block-heading" id="h-shift-of-focus">Shift of Focus</h3>
Bitcoin ETPs in Europe have seen a large withdrawal. Many American institutions used European ETPs for almost risk-free basis transactions before many spot bitcoin ETFs were approved.&nbsp;
According to Nolan, these financial institutions may find it more convenient or cost-effective to perform the identical base transactions domestically now that the new U.S. products have been approved. Institutional investors in the United States may engage in what Nolan calls “basis trades” with little or no risk.
To ensure they could complete the contract and benefit from the basis difference—the premium over the underlying asset price that the futures price holds—investors in the US were shorting bitcoin futures while simultaneously purchasing the underlying asset via European ETPs. But now there’s an easier method for them to do it locally with spot bitcoin ETFs, Nolan noted.
The basis is the spread between an asset’s cash or spot price and its futures price for a given contract in futures trading. According to <a href="https://www.bitmex.com/" target="_blank" rel="noopener noreferrer nofollow">BitMEX</a> Research’s data, since the debut of spot bitcoin ETFs last week, there has been a significant outflow of capital from the four biggest European bitcoin ETPs.
Highlighted Crypto News Today:
<a href="https://thenewscrypto.com/chainlink-link-turns-bullish-another-rally-ahead/" target="_blank" rel="noopener noreferrer nofollow">Chainlink (LINK) Turns Bullish. Another Rally Ahead?</a>

U.S Bitcoin ETFs Trigger Outflows from European Bitcoin ETP

Table of Contents

TheNewsCrypto

Other articles published on Jan 20, 2024

UK economy: Is the soft landing still in sight?

Bearish Analyst il Capo Announces He Will Buy Another Altcoin After UniSwap: Price Reacted Instantly

3 Crypto With Unstoppable Potential: Sei, Aptos and Scapesmania

AI and Tech Transform the Athletic Experience – From Wearables to Smart Stadiums

TRON (TRX) And Shiba Inu (SHIB) Both Kill A Zero, Pullix (PLX) Next Inline As Price Approaches $0.10

Is BlackRock Looking To File For An XRP ETF? Insider Has Answers

Join our free newsletter for daily crypto updates!