Institutions Favor Cash Over Bitcoin as Spot Volume Hits Record Low

BTC spot volume hit its lowest level since 2019, according to Glassnode's weekly report. This is largely due to institutional desks earning more by sitting in cash than running the crypto carry trade.

Glassnode analyst Frederik Theissen noted that three-month futures basis has paid less than a two-year Treasury since February, making cash the better trade for institutions.

The downstream effect shows up across every surface: spot volume, exchange flows, and ETF demand have all gone quiet at the same time. Glassnode traced all three back to that single spread making cash the better trade.