Nolan pointed out that there is now a more convenient way for investors to trade bitcoin ETFs on a local level. Observing a marked decrease in investments within Europe’s four largest bitcoin ETPs, one analyst reported increased withdrawals from European bitcoin exchange-traded funds following the introduction of spot BTC ETFs in the United States. CoinShares Research Associate Luke Nolan suggests that the transformation in the market is indicative of a trend where it seems US institutional investors are increasingly turning their attention towards the recently approved spot bitcoin ETFs. The appeal appears to be driven by reduced fees and the established reputations of the entities involved, resulting in BlackRock and Fidelity attracting most of the new investment. Concurrently, there has been a significant outflow from Bitcoin ETPs in Europe. Prior to the authorization of numerous spot bitcoin ETFs in the United States, several American organizations engaged in virtually risk-free basis trades using European ETPs (Exchange Traded Products). Nolan points out that with the recent approval of new U.S. financial products, these institutions might now find it more practical or economical to carry out the same basis trades within the domestic market. US-based institutional investors might participate in a type of low-risk transaction referred to by Nolan as “basis trades.” These investors secure their ability to fulfill the agreements and take advantage of the basis spread, which is the extra amount that futures prices are over the actual price of the asset. They achieve this by concurrently selling bitcoin futures short and buying the actual bitcoin through European Exchange-Traded Products (ETPs). Nolan pointed out that with the introduction of local spot bitcoin ETFs, investors now have a more straightforward option to trade. The basis he refers to is the difference in the price of an asset when bought for immediate delivery (spot price) versus its price in futures trading for a specified contract. BitMEX Research’s findings show that following the introduction of spot bitcoin ETFs last week, there has been a substantial withdrawal of funds from the four largest Bitcoin ETPs in Europe. Featured Cryptocurrency News: Chainlink (LINK) Exhibits an Uptrend. Is Another Rally on the Horizon? Share.