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Bitcoin ETF Inflows Bounce Back After Three-Day Slump | ETF News 

2 mins
Updated by Ann Maria Shibu
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In Brief

  • Despite a subdued BTC price, Bitcoin ETFs saw $378 million in inflows, strengthening investor confidence.
  • Ark Invest's ARKB ETF led the inflows with $140 million, while Fidelity’s FBTC ETF followed with $ 137 million.
  • Bitcoin futures open interest dropped 3%, reflecting reduced trader activity amid price stagnation.
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On Tuesday, Bitcoin exchange-traded funds (ETFs) reversed three consecutive days of outflows to post over $350 million in net inflows. 

This reversal is notable as it occurred despite BTC closing the day in the red, highlighting a shift in investor sentiment that could signal strengthening bullish conviction.

Institutions Load Up on Bitcoin ETFs Amid Sideways Market

According to SosoValue, on Tuesday, investors poured $378.04 million in new capital into BTC-backed funds, pushing the total net asset value of all BTC spot ETFs to $128.13 billion.

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

While BTC’s spot price has struggled to gain traction, extending its recent trend of sideways movement with only marginal gains today, ETF demand appears to be decoupling from short-term price action. The inflows suggest that institutional investors may be buying the dip even as the market shows little immediate momentum.

Ark Invest and 21Shares’ ETF ARKB recorded the largest daily net inflow, totaling $140 million, bringing its total cumulative net inflows to $2.51 billion.

Fidelity’s ETF FBTC recorded the second-highest net inflow of the day, recording $137 million. The ETF’s total historical net inflows now stand at $11.69 billion.

Cautious Market Mood as Open Interest Slides 

Today, open interest in BTC futures has declined, indicating that many derivatives traders are stepping back from the market. At press time, this is at $70.89 billion, plunging 3% over the past day.

BTC Futures Open Interest.
BTC Futures Open Interest. Source: Coinglass

Open interest measures the total number of active futures or options contracts that have not been settled or closed. When it falls while BTC’s price is stuck in a sideways trading range, traders are closing positions and stepping back from the market due to uncertainty or lack of conviction. 

This decline in participation signals weakening momentum, making a BTC price breakout less likely in the near term.

However, the demand for call options has surged today, implying that some traders are positioning for an upside move. When the demand for calls exceeds puts, it reflects growing optimism among traders and hedging against a potential breakout.

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

The current market trends hint at a growing undercurrent of bullish sentiment, which, if market conditions improve, could set the stage for a broader recovery.

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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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