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Bitcoin ETF Outflows Slow, But Market Sentiment Stays on Edge| ETF News

2 mins
Updated by Ann Maria Shibu
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In Brief

  • Bitcoin spot ETF outflows slowed to $129 million last week, indicating reduced bearish momentum among institutional investors.
  • June 5 saw a single-day $278 million outflow amid a sharp BTC drop, but a rebound in flows the next day suggests market resilience.
  • Despite a negative funding rate of -0.0056%, high demand for BTC call options shows lingering optimism among sophisticated traders.
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Last week, US-listed spot Bitcoin exchange-traded funds (ETFs) recorded net outflows exceeding $120 million. 

While the figure reflects continued investor caution, it also represents a slight improvement from the previous week’s larger outflows, signaling a tentative resurgence in bullish sentiment.

BTC ETF Outflows Cool After Heavy June 5 Dump

According to SosoValue, net outflows from spot BTC ETFs totaled $129 million between June 2 and June 6. The moderation in capital flight suggests that while some institutional investors remain wary, others may be growing more risk-on sentiment. 

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

Last week, the heaviest single-day outflow occurred on June 5, when BTC’s price fell to an intraday low of $100,372. The drawdown dampened sentiment across ETF markets, with net outflows totaling $278.44 million that day. 

However, the fact that outflows lessened on the following trading day points to growing resilience in the market, despite BTC’s lackluster price performance.

Bitcoin Futures Turn Bearish, Options Stay Bullish

Today, BTC has posted a mild 0.13% price decline to trade at $105,488 at press time. The coin has resumed its sideways trading, reflecting ongoing uncertainty in the broader crypto market.

Meanwhile, the funding rate across major perpetual futures markets has turned negative, indicating that more traders are betting on further downside in the short term. As of this writing, this is at -0.0056%.

Bitcoin Funding Rate
Bitcoin Funding Rate. Source: Coinglass

The funding rate is a periodic payment between traders in perpetual futures contracts to keep the contract price aligned with the spot price. When the funding rate is negative, there is a higher demand for short positions. This trend indicates more traders are betting on BTC’s price decline, adding to the bearish pressure in the market.

However, BTC options data offers some respite. Per Deribit’s data, BTC options traders continue to show strong demand for call options. This points to optimism among sophisticated market participants, even as short-term indicators remain mixed.

Bitcoin Options Open Interest
Bitcoin Options Open Interest. Source: Deribit

Overall, while BTC ETF weekly flows remain in the red, the deceleration in outflows and a rise in bullish derivatives positioning suggest that market participants may be bracing for a potential turnaround.

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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