Bitcoin-backed Funds See 67% Drop in Inflows Despite Price Surge

Last week, Bitcoin-backed funds experienced a net inflow of $600 million. While this figure represents a positive capital influx, it marks a significant 67% decline from the $1.81 billion recorded the previous week. This slowdown in institutional investment occurred despite Bitcoin's price surging above the $100,000 mark for the first time since early February. This divergence in investor behavior raises questions about the underlying sentiment driving the market.

Spot Bitcoin ETFs saw inflows totaling $600 million last week. Although this was a net positive in terms of capital inflow, it represented a 67% decrease from the $1.81 billion these funds saw in inflows the previous week. Notably, this trend occurred the same week Bitcoin decisively broke above the $100,000 price mark for the first time since February. This suggests that the breakout, rather than sparking a buying frenzy, prompted some ETF holders to lock in gains or hold off on fresh entries.

Last week’s drop in inflows suggests that while institutional appetite for Bitcoin exposure remains, the pace is slowing, possibly due to caution or fear. It reflects a wait-and-see attitude from investors who had waited three months for the coin to break above $100,000 and are now watching to see if it can hold and stabilize above that key level.

Bitcoin's price stands at $103,979, with a 0.24% gain over the past 24 hours. During this period, open interest in Bitcoin futures has climbed 2%, reflecting increasing trading participation. At the time of reporting, this stands at $67.04 billion. A rise in Bitcoin’s price and open interest signals confidence, as more traders are taking positions. This combination suggests a strong trend, with traders expecting the price movement to continue in the direction it is heading.

Additionally, the coin’s funding rates remain positive at 0.0082%. This means long positions pay shorts, indicating market participants are leaning bullish. Options market activity also reinforces this bullish outlook. Today, call contracts exceed puts, showing that traders are betting on more upside. A combined reading of these metrics suggests that while ETF inflows may have dipped, broader market sentiment remains confident and risk-on.