Bitcoin has held steady at around $105,000 over the past week, triggering a slowdown in ETF activity. On Monday, outflows from US-listed spot BTC ETFs exceeded $250 million, marking the third consecutive day of withdrawals.
This signals that institutional appetite may be fading as BTC remains locked in a consolidation phase.
BTC ETFs Log 3rd Day of Outflows Amid Price Consolidation
On Monday, institutional investors removed capital from US-listed spot BTC ETFs, signaling a dip in crypto exposure among them. According to SosoValue, net outflows from these funds totaled $268 million, marking the third day of consistent outflow.
The slowdown in ETF inflows has been prompted by BTC’s consolidation around the $105,000 mark, which has begun to weigh heavily on institutional sentiment. Over the past week, the leading coin has oscillated within a narrow price range, leading to a dip in investor enthusiasm.
However, this is not out of place. During periods of price consolidation, institutional investors are known to rotate capital into alternative assets or adopt a wait-and-see approach. This often leads to reduced ETF activity and dampened short-term inflows.
Bitcoin Bulls Stir in Derivatives Market
Bitcoin currently trades at $105,422 after rising 1% over the past day. Bullish pressure persists across the coin’s futures market as traders continue to bet on a sustained rally.
This is reflected by the coin’s positive funding rate, which stands at 0.0038% at press time.
The funding rate is a periodic payment exchanged between long and short traders in perpetual futures contracts. It keeps the contract price in line with the spot market. When positive, traders holding long positions pay those with short positions, indicating that bullish sentiment dominates the market.
Moreover, this is also the trend among BTC options traders, evidenced by today’s high demand for calls. A call option gives the holder the right to buy an asset at a predetermined price, and increased demand for calls like this signals that traders expect BTC to witness a rally.
These indicators suggest that while institutional ETF flows are waning due to BTC’s recent price stagnation, derivatives traders remain optimistic and are positioning for an upward breakout.
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