According to The Kobeissi Letter, institutional investors are continuing to decrease their stock market exposure, as evidenced by funding spreads dropping 8 basis points last week to the lowest level since August 2024 (source: The Kobeissi Letter, May 6, 2025). Funding spreads gauge institutional appetite for long positions in stocks via futures, options, and swaps. This decline signals weakening institutional confidence in equities, which often drives capital into alternative assets such as cryptocurrencies. Traders should monitor this shift as reduced equity demand could boost crypto market inflows, potentially increasing volatility and trading opportunities in digital assets.

According to The Kobeissi Letter, institutional investors are continuing to reduce their exposure to stocks, as evidenced by a significant drop in funding spreads by 8 basis points last week, reaching the lowest level since August 2024 (source: The Kobeissi Letter, May 6, 2025). This decline in funding spreads, which measure institutional demand for long stock positions via futures, options, and swaps, signals a risk-off sentiment among major market players. For crypto traders, this ongoing reduction in institutional stock allocations could drive increased capital flows and volatility in the cryptocurrency market as investors seek alternative assets with higher return potential.

According to The Kobeissi Letter, institutional investors are reducing their stock exposure as the funding spread has decreased by approximately 50 basis points over recent weeks, reaching its lowest point since August 2024. This decline reflects a reduced demand for long stock exposure via futures, options, and swaps, indicating a possible shift in institutional trading strategies. Source: The Kobeissi Letter.

According to The Kobeissi Letter, institutional investors are reducing their stock exposure, as indicated by a 50 basis point decline in the funding spread over recent weeks, reaching its lowest level since August 2024. This spread measures the demand for long stock positions through futures, options, and swaps, reflecting a significant shift in institutional trading strategies.