U.S. Bitcoin ETFs Report $516.4 Million in Outflows This Week

U.S. spot-listed bitcoin (BTC) exchange-traded funds (ETFs) saw outflows of $516.4 million on Monday, marking the second-largest withdrawals this year. This trend continues a pattern of nine net outflows in the past ten days, indicating investor discomfort as bitcoin traded between $94,000 and $100,000 for most of the month.

On Tuesday, bitcoin fell below $90,000, reaching a low of $88,250. The annualized basis for bitcoin CME futures has decreased to 4%, the lowest since ETF trading began in January 2024, reflecting a decline in the cash-and-carry trade strategy.

The current basis trade is less than the yield on the U.S. 10-year Treasury at 5%. This discrepancy may prompt investors to close positions in ETFs for better returns, potentially leading to further outflows. According to Arthur Hayes, co-founder of Bitmex, hedge funds long on ETFs might shift to buying back CME futures if the basis continues to drop.