Bitcoin (BTC) Exchange-Traded Funds (ETFs) Saw Significant Inflows Yesterday

With BTC now trading back above the $90,000 mark, signs point to renewed institutional interest, as major players appear to be piling back into the market

Yesterday saw significant outflows from Bitcoin exchange-traded funds (ETFs), continuing the trend of net negative flows.

After two days of outflows, major institutional players appear to be piling back into the market.

BTC ETF Outflows Continue

On Wednesday, net outflows from US-based spot Bitcoin ETFs totaled $784.58 million, a decrease from the previous day’s outflows of $966.48 million.

This marked the third consecutive day of outflows from the ETFs, which began on Monday with a small outflow of $166.40 million.

However, compared to the massive outflows witnessed in December and November, these outflows are relatively modest.

Among the ETFs, Ark Invest and 21Shares’ ETF ARKB saw the highest daily net outflows, reporting outflows of $261.37 million.

Fidelity’s ETF FBTC followed with net outflows of $244.34 million. The ETF’s total historical net outflows now stand at $11.37 billion.

BTC's Price Drops, But Derivatives Traders Are Active

On the derivatives side, open interest in BTC futures has also declined, arriving at its lowest point since January 24.

At press time, BTC trades at $88,488, noting a 3% price drop over the past day. During the same period, its futures open interest has also decreased by 13%. As of this writing, it stands at $63.24 billion.

When an asset's price and open interest decrease simultaneously, it signals weak conviction behind the move. It means less capital is entering the market to support the uptrend.

However, not all indicators point to bearish sentiment.

Despite BTC's price setback over the past day, the funding rate remains positive, suggesting that traders are paying a premium to long the coin in the futures markets. The coin's funding rate is currently at 0.03%.

This indicates that more traders are optimistic about BTC's current price action and are hoping to ride the existing trend.

Additionally, the put-to-call ratio is heavily skewed towards calls. This indicates strong investor confidence and expectations of further upward price movement among BTC options traders.

With BTC struggling to stabilize and major institutional players pulling back, the coming days could reveal whether this momentum holds.