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BlackRock’s IBIT Dominates Inflows as Bitcoin Tests $109,000 | ETF News

2 mins
Updated by Ann Maria Shibu
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In Brief

  • Bitcoin surged to $109,952, sparking $408 million in inflows into BTC-backed ETFs, led by BlackRock’s IBIT.
  • BlackRock's IBIT saw $267 million in inflows, boosting its total to $50.03 billion, signaling strong institutional interest.
  • Despite today's 1% gain, negative funding rates and rising demand for put options indicate growing bearish sentiment.
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On Monday, leading coin Bitcoin surged to an intraday high of $108,952 as renewed buying interest pushed the asset higher. The rally triggered significant activity across BTC-backed ETFs.

Bitcoin ETFs recorded a combined net inflow exceeding $400 million for the day, with BlackRock’s IBIT leading the charge. Today, the king coin has recorded a modest 1% gain, with on-chain showing growing skepticism among leveraged traders.

ETF Inflows Surge on Bitcoin Rally

Bitcoin climbed to an intraday high of $109,952 on Monday as renewed investor interest drove a wave of buying pressure. 

This resurgence in momentum helped fuel a spike in inflows into US-listed spot BTC ETFs, which saw a net capital injection of $408.59 million, their largest single-day inflow since June 10.

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

BlackRock’s iShares Bitcoin Trust (IBIT) led the ETF pack in net inflows, asserting its dominance among institutional-grade crypto investment vehicles. Per SosoValue, the fund’s inflows on Monday amounted to about $267 million, bringing its total historical net inflow to $50.03 billion.

This strong inflow suggests that institutional investors remain largely unmoved by near-term volatility and continue seeing BTC as a valuable portfolio hedge. 

BTC Holds Steady, But Traders Hedge for Downside

While BTC is up a modest 1% today, the derivatives market is flashing warning signals. Funding rates have flipped negative again, reflecting renewed bearish sentiment among perpetual futures traders. According to Coinglass, this currently stands at 0.0007%. 

BTC Funding Rate.
BTC Funding Rate. Source: Coinglass

The funding rate is a periodic payment exchanged between traders in perpetual futures markets to keep contract prices aligned with the spot market. When the funding rate is negative, short traders are paying long traders, indicating that bearish sentiment dominates the market.

If this lingers, it could exacerbate the downward pressure on the coin’s price. 

Meanwhile, options traders are also leaning defensive. Data from Deribit shows an increased demand for put contracts over calls today, suggesting investors are seeking downside protection amid growing uncertainty.

BTC Options Open Interest. Source: Deribit

While ETF inflows point to strong institutional demand, the underlying market signals suggest traders are treading carefully. With funding rates turning negative and put options gaining traction, investors may be bracing for short-term volatility despite the bullish inflow narrative. 

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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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