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Bitcoin ETF Momentum Cools, But Derivatives Markets Remain Optimistic | ETF News

2 mins
Updated by Ann Maria Shibu
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In Brief

  • Spot Bitcoin ETFs saw a slowdown in net inflows, dipping 61% to $165 million after a strong $435 million on June 10.
  • BTC’s resistance near $110,000 has stalled upward momentum, with some profit-taking seen in the spot market.
  • Despite the price dip, derivatives markets remain optimistic with positive funding rates and high demand for BTC call options.
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Spot Bitcoin ETFs continued their streak of net inflows for the third consecutive day, bringing in over $160 million yesterday. While this marks a healthy continuation of investor interest, it represents a pullback from the $431 million recorded the previous day.

The slowdown comes as BTC tests resistance around the $110,000 mark, stalling upward momentum in the spot market.

ETF Demand Holds Steady for BTC

On Wednesday, net inflows into US-listed spot BTC ETFs totaled $165 million. Although this figure marked continued investor interest in these investment funds, it represented a 61% decline from the $435 million posted on June 10.

Total Bitcoin Spot ETF Net Inflow
Total Bitcoin Spot ETF Net Inflow. Source: SosoValue

The slowdown is largely attributed to BTC’s seeming price stagnation around the $110,000 mark over the past two days. This reflects the coin’s struggle to gain upward momentum amid profit-taking activity.

Yesterday, BlackRock’s IBIT led the pack with the highest daily inflows, totaling $131.01 million, bringing its total historical net inflow to $49.24 billion.

VanEck’s HODL ETF recorded the second-highest daily net inflow, bringing in $15.39 million on Wednesday. According to SosoValue, its total historical net inflows have now reached $968.94 million.

Traders Shrug Off Bitcoin’s Decline as Derivatives Signal Strength

Currently trading at  $107,939, BTC is down 2% over the past day. Despite this decline, sentiment across BTC’s derivatives market remains largely bullish. 

For example, the coin’s futures markets continue to reflect a positive funding rate, an indicator that long positions keep outpacing shorts. As of this writing, this stands at 0.0062%.

BTC Funding Rate
BTC Funding Rate. Source: Coinglass

The funding rate is a recurring payment between long and short positions in perpetual futures contracts, designed to keep the contract price aligned with the spot price. A positive funding rate like this means traders holding long positions are paying shorts, indicating that bullish sentiment dominates the BTC market.

Furthermore, an assessment of the BTC options market data shows a notable demand for call contracts.

BTC Options Open Interest.
BTC Options Open Interest. Source: Deribit

This suggests that despite the coin’s lackluster performance over the past day, many traders are positioning for a potential breakout in the near term.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Abiodun Oladokun
Abiodun Oladokun is a Technical and On-Chain Analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment...
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