Bitcoin-based Exchange-Traded Funds (ETFs) Experience $56 Million Loss, Curbing Eight-Day Influx Trend | ETF Insights
Hump Day Slump: Bitcoin ETFs Witness First Net Outflow in Over a Month
On a rollercoaster Wednesday, Bitcoin spot ETFs experienced their first net outflow since April 16, snapping an impressive eight-day stretch of consistent inflows. The outflow equated to a hefty $56.23 million departure from these funds, indicating a possible cooldown in institutional interest.
This move marks a noticeable shift after Bitcoin ETFs amassed over $2 billion in net inflows over the past eight trading sessions. The question now lies in whether this reversal signals a decrease in institutional demand following a period of significant accumulation.
BTC’s Modest Mood reflects Investor Indecision
Bitcoin’s seemingly reluctant behavior since April 25 might well have tempted some investors to pull the plug temporarily on their BTC-linked funds. The digital coin has been grooving in a narrow range since then, trying its best to break above $95,427 but struggling to make a meaningful move. On the flip side, support at $93,749 has seemed sturdy.
This tight consolidation raises uncertainty around near-term momentum, making it harder for Bitcoin ETFs to sustain the aggressive inflows they enjoyed previously.
The One Fund That Bucks the Trend: BlackRock's iShares Bitcoin Trust
Among all the ETFs, BlackRock's iShares Bitcoin Trust (IBIT) bucked the trend, tallying a net inflow of $267.02 million on this particular day. So far, the fund has mobilized an impressive $42.65 billion in historical net inflows.
Conversely, Fidelity’s FBTC took a hit, witnessing a $137.49 million exit in a single day. While this might seem like a setback, FBTC’s total historical net inflow still stands solid at $11.63 billion.
Derivatives Market Displays Horror Film Scene?
Apart from the spot market, mixed sentiments persist in the derivatives market among traders. Open interest in Bitcoin futures has slightly waned over the last day, suggesting lessened activity. Despite the recent price consolidation, persistent bullish signs emerge from the futures market. One prime example is the coin’s positive funding rate, which currently stands at 0.0039%, indicating a preference for long positions over short ones.
The coin's options market, too, points towards a brighter outlook, with more call contracts than puts, indicating traders' expectations for an upward breakout.
The pullback in ETF inflows may hint at profit-taking after a strong April performance, but the recent data from both futures and options markets suggest investors are not turning bearish just yet.
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- Bitcoin spot ETFs, after eight consecutive days of inflows, experienced a net outflow worth $56.23 million on April 28, revealing a possible cooldown in institutional interest.
- This shift follows a prolonged period of net inflows totaling over $2 billion for Bitcoin ETFs. The April 28 outflow indicates a possible reversal that might signal a decrease in institutional demand following significant accumulation.
- Bitcoin's price has been consolidating since April 25, hovering around the $95,427 mark, but struggling to make a meaningful move beyond this range. This tight consolidation raises uncertainty around near-term momentum, making it harder for Bitcoin ETFs to sustain the aggressive inflows experienced in previous trading sessions.
- Among all ETFs, BlackRock's iShares Bitcoin Trust (IBIT) bucked the trend on April 28, recording a net inflow of $267.02 million. Conversely, Fidelity’s FBTC witnessed a $137.49 million exit on the same day.
- Open interest in Bitcoin futures has slightly dropped, indicating lessened activity in the derivatives market. However, bullish signs persist, with a positive funding rate of 0.0039% for long positions and more call contracts than puts in the options market, pointing towards an upward breakout.
- Although the pullback in ETF inflows might indicate profit-taking after a strong April performance, the recent data from both futures and options markets suggest investors are not turning bearish just yet.
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