BTC basis trade impact wanes as large buyers accumulate, says analyst

The influence of the "basis trade" strategy that has been pressuring the Bitcoin market has largely dissipated, according to Alex Blume, CEO of investment advisory firm Two Prime. Speaking to DL News, Blume explained that a reduction in futures positions suggests the strategy is in its final stages. He noted that simultaneously, MicroStrategy (MSTR) has emerged as a key buyer, accumulating approximately $60 billion in BTC. Blume added that prices tend to react when directional funds enter the market, describing the current structure as unusual, with capital from hedging strategies exiting while large buyers continue their accumulation. The basis trade is a strategy that exploits the price difference between spot and futures. It involves buying a spot asset, such as the IBIT ETF, and shorting futures to capture the premium.