Bitcoin Updates Today: Institutional Bitcoin Buzz vs. Arbitrage Facts: Hayes Reveals the Strategy

The narrative of institutional enthusiasm for Bitcoin is being questioned, as BitMEX co-founder Arthur Hayes disputes the idea that influential firms like

are truly optimistic about the cryptocurrency. Even though BlackRock's iShares Trust (IBIT) has seen unprecedented inflows and prominent institutions such as Harvard University have made significant investments, Hayes claims that much of this activity is driven by arbitrage rather than genuine long-term belief .

Harvard University’s latest disclosure to the U.S. Securities and Exchange Commission showed

in its assets, now worth $442.8 million, making it the university’s top ETF holding. The Ivy League school also acquired $235 million in gold ETFs, reflecting a broader move toward alternative investments. Brown University, meanwhile, owns $13 million in IBIT, further highlighting institutional participation. with a wider pattern: BlackRock’s IBIT experienced a 15% rise in institutional investors during Q3 2025, with sovereign wealth funds and investors from the Middle East representing a notable share of ownership.

Yet, Hayes maintains that this apparent institutional interest is misleading. He points out that major players—hedge funds, bank trading desks, and BlackRock itself—are engaging in a “basis trade,” simultaneously purchasing IBIT shares and shorting Bitcoin futures to profit from yield differences

. In his view, this approach distorts the narrative of institutional demand. “They are not actually long on Bitcoin. They’re only participating for a few extra basis points above Fed Funds,” Hayes stated in an email. As U.S. rates have fallen, the arbitrage opportunity has expanded, resulting in and rapid withdrawals when those spreads narrow.

Recent figures back up this trend.

, with $2.3 billion leaving the market in November 2025—the largest outflow since May 2025. For example, Wisconsin’s Investment Board earlier this year. At the same time, Hayes has been reducing his crypto holdings, and various altcoins through platforms such as B2C2 and FalconX . His recent transactions include sent to B2C2 and significant amounts of tokens such as , LDO, and .

Hayes’ recent moves stand in contrast to his outspoken support for privacy-oriented

(ZEC), which he describes as his “second-largest liquid holding” . Despite the broader market downturn, he remains confident that ZEC could eventually reach $19,200, which would give it a $313 billion market cap. Meanwhile, Ethereum has dropped below $3,200, with on whether this signals a bearish phase or the start of a “supercycle” reminiscent of Bitcoin’s 2017 surge.

The ongoing debate between institutional involvement and arbitrage strategies highlights Bitcoin’s shifting place in the financial world.

and in IBIT holders point to rising acceptance, Hayes’ perspective warns of the dangers of misreading market activity. As BlackRock’s ETF continues to lead in assets, the distinction between true belief and tactical trading becomes more ambiguous—a factor that could influence Bitcoin’s direction in the near future.