TechFlow reported on March 3 that according to a Matrixport research report, Bitcoin ETFs experienced outflows of $350 million in February, marking the largest single-month outflow since their launch in January 2024. This phenomenon may stem from hedge funds unwinding basis trades (going long on ETFs while hedging with short futures positions). This trend aligns with the $8 billion decline in CME Bitcoin futures open interest following the Federal Reserve's FOMC meeting in December 2024—an amount exceeding 20% of total ETF inflows.
Analysis suggests this round of selling pressure could be linked to the expiration and settlement of February futures contracts, a factor now believed to have been absorbed by the market. As its impact diminishes, hedge funds may reduce ETF selling and reassess arbitrage spreads again by late March. Current indicators suggest ETF selling pressure appears to have temporarily halted.
