Retail investors are not a “key driver” of spot Bitcoin ETFs, with a majority of inflows coming from arbitrage trading hedge funds, according to Raoul Pal.
Around two-thirds of the net inflows into spot Bitcoin (BTC) exchange-traded funds (ETFs) may be coming from arbitrage trading, claims Real Vision CEO Raoul Pal.
“If this is correct, it shows the vast majority of the ETF flow are just arbitrageurs and retail is not the key driver yet,” Pal said in a June 11 X post, referring to data presented by crypto analyst and MV Capital partner Tom Dunleavy.
The data showed the “top 80 holders” of United States Bitcoin ETFs were hedge funds with capital coming from various institutional and individual investors.
