TechFlow news, February 28 — 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 play. 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, this spread has "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."
