The largest holders of the biggest ETF by AUM (Blackrock’s IBIT US) use the ETF as part of a basis trade; they are not long Bitcoin. They short a CME-listed Bitcoin futures contract vs. buying the ETF to earn the spread between the two.[1] This is capital efficient because usually their broker allows them to post the ETF as collateral against their short futures position.
Snow Forecast
It’s that time again when I become an armchair meteorologist. Concepts like La Nina and El Niño enter my lexicon. Predicting a storm’s...