Master Ventures founder: ETFs brought hedge funds for short-term arbitrage; Bitcoin needs to find "true organic buyers" to resume its upward trend
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Master Ventures founder: ETFs brought hedge funds for short-term arbitrage; Bitcoin needs to find "true organic buyers" to resume its upward trend
According to Cointelegraph, Kyle Chasse, founder of crypto venture firm Master Ventures, said that Bitcoin's price will continue to fluctuate until real buyers enter the market, rather than just traders seeking arbitrage opportunities. "This is a classic liquidity game. ETFs bring not only long-term holders but also hedge funds engaging in short-term arbitrage," Chasse explained, noting that hedge funds have been exploiting price differences between Bitcoin spot ETFs and CME futures to earn "low-risk returns." As the market
Navigating Web3 tides with focused insightsTechFlow, Feb 28 — According to Cointelegraph, Kyle Chasse, founder of crypto venture firm Master Ventures, said that Bitcoin prices will continue to fluctuate until real buyers enter the market, rather than just traders seeking arbitrage opportunities. "This is a classic liquidity game. ETFs bring not only long-term holders but also hedge funds engaging in short-term arbitrage."
Chasse explained that hedge funds have been exploiting price spreads between Bitcoin spot ETFs and CME futures to earn "low-risk returns." As the market declines, these spreads have "collapsed," making the strategy unprofitable. He emphasized: "Hedge funds don't care about Bitcoin itself. Now that the trade isn't working, they're pulling out liquidity, causing the market to free fall."
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