Bitcoin ETFs See $319.56M Inflow, Led by BlackRock's $232.89M

On Wednesday, US-listed Bitcoin ETFs experienced a significant inflow of over $315 million, marking a notable reversal from the previous day's outflows of $96 million. This surge in demand indicates a bullish shift in investor sentiment, despite a modest decline in BTC’s price on the same day.

None of the twelve spot BTC-backed ETFs reported outflows, with total inflows amounting to $319.56 million, representing one of the strongest single-day performances in recent weeks. This shift in sentiment suggests renewed interest from both retail and institutional investors, likely driven by the opportunity to buy the dip and growing confidence in BTC’s long-term potential, despite short-term price fluctuations.

BlackRock’s ETF IBIT led the way with the highest net inflow of $232.89 million, bringing its total historical net inflow to $45.01 billion. Fidelity’s FBTC followed with the second-highest daily net inflow of $36.13 million, accumulating a total historical net inflow of $11.65 billion.

Despite a modest 1% price pullback in BTC over the past day, market data indicates lingering bullish sentiment. The coin’s funding rate remains positive at 0.0025%, suggesting that traders are still willing to pay a premium to maintain long positions in perpetual futures. This positive funding rate indicates bullish sentiment and higher demand for long positions, as traders holding long BTC positions pay those holding short positions, a trend that could increase the coin’s value.

Additionally, options activity shows a greater demand for calls over puts, suggesting that traders are positioning for potential upside in the near term. In conclusion, the inflows suggest that institutional investors may be buying the dip, betting on a longer-term recovery in BTC price.