Institutional Demand Revives as Bitcoin ETF Inflows Hit $667M Amid Rising Basis Trade Yields
Bitcoin ETFs listed in the U.S. saw strong inflows of $667.4 million on May 19, reflecting renewed institutional appetite as bitcoin prices remain steadfast above $100,000 and the basis trade yield nears 9%.
Nearly half of the inflows, about $306 million, flowed into the iShares Bitcoin Trust (IBIT), pushing its total net inflows to $45.9 billion, per Farside Investors data.
The growing demand follows bitcoin’s steady price action, sustaining over $100K for 11 days straight, which has bolstered investor confidence.
The basis trade strategy—taking a long position in spot bitcoin ETFs while shorting bitcoin futures on CME—has become increasingly lucrative, with annualized returns approaching 9%, nearly double the rates observed in April.
CME futures volumes rose to $8.4 billion (roughly 80,000 BTC) on Monday, the highest since late April, while open interest increased to 158,000 BTC, up more than 30,000 contracts from recent lows. This reflects a growing enthusiasm for arbitrage and leveraged strategies.
Still, current futures volumes and open interest are below January’s highs, when bitcoin peaked at $109,000, indicating room for further growth.
The improved basis spread appears to be luring back investors who had exited earlier this year. Wisconsin State Pension Board, for instance, had sold its ETF holdings in Q1 during a less favorable basis environment but might have reentered in Q2 amid the wider spreads, based on typical 13F reporting delays.
