Milk Road Crypto Crypto Is In A Bear Market… So Why Aren’t ETF Investors Selling? w/ James Seyffart
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Jun 3, 2026 
James Seyffart, senior research analyst at Bloomberg known for data-driven ETF and fund flow analysis, breaks down surprising ETF behavior amid a Bitcoin selloff. He digs into who is really selling, why some token ETFs outperform, how basis trades and hedge funds move markets, and what drives long-term conviction in ETF investors.
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ETF Outflows Look Big But Holders Still Committed
- Bitcoin ETF flows show nearly $4B of outflows over a 12-day streak, but net inflows remain ~ $55B since launch.
- James Seyffart attributes recent selling to momentum and technical factors, not ETF holders abandoning positions.
Basis Trade Explains Quick ETF Flow Swings
- Hedge funds executed a basis trade: short futures and buy spot ETFs to capture basis yield, driving large, fast flows.
- When basis yields compress (near zero), those hedge funds unwind and produce abrupt ETF outflows.
ETF Buyers Are More Durable Because They Right Size
- ETF buyers tend to be "right-sizing" allocations (1–5%) in retirement or brokerage accounts, making them more durable holders.
- That allocation behavior helps ETF holders show more conviction than past crypto cycles.