According to Eric Balchunas, Bitcoin ETFs have experienced a significant surge, consuming nearly 25,000 BTC within three days. Notably, $IBIT alone attracted $643 million yesterday, ranking it as the top ETF. This indicates how swiftly ETF flows can escalate, potentially due to the resurgence of basis trades.

According to Farside Investors, the spread between the Bitcoin basis rate and government bond yields is narrowing. Given that government bonds are considered much lower risk, a further narrowing of this spread could potentially lead to a drying up of the basis trade. This analysis suggests a shift in the risk-reward balance for traders involved in basis trades, indicating a need for careful monitoring of these rates for future trading strategies.

According to Miles Deutscher, the amount of Bitcoin ($BTC) held in CME open interest has decreased to levels seen before the recent election. This reduction is attributed to the unwinding of the basis trade, which has contributed to a reset in the total leverage within the system. This development indicates a potential stabilization in trading dynamics, which could affect traders' strategies around leverage and risk management.