Bitcoin ETFs See $2.68B Inflows, Price Rises 1%

Bitcoin ETFs have experienced a notable surge in inflows, marking the fifth consecutive day of positive net flows. The total inflow for Thursday alone exceeded $440 million, contributing to a weekly total of $2.68 billion. This figure represents the highest weekly net inflow since the first week of December 2024.

Leading the charge is BlackRock’s ETF IBIT, which recorded the largest daily net inflow of $327.32 million. This brings its total cumulative net inflows to $40.96 billion. Following closely is ark Invest and 21Shares’ ETF ARKB, which saw a net inflow of $97.02 million, pushing its total historical net inflows to $3.09 billion.

This influx of capital into Bitcoin ETFs coincides with a modest market rebound over the past 24 hours. The price of Bitcoin has risen by 1% during this period, indicating a growing investor confidence in the cryptocurrency market. The simultaneous uptick in Bitcoin’s price and open interest signals increasing market participation and a bullish sentiment among investors.

Ask Aime: "Bitcoin ETFs Surge, What's Next?"

Moreover, the options market reflects a tilt toward bullish sentiment, with call volumes outpacing puts. As of the latest data, the coin’s put-to-call ratio stands at 0.74, suggesting that investors are positioning for a sustained upside in Bitcoin’s price. This bullish sentiment is further supported by the fact that more call options are being purchased than puts, indicating a positive outlook among options traders.

However, despite these positive indicators, the funding rate for Bitcoin remains negative, currently at -0.0008%. This metric, which represents a periodic payment between long and short positions in perpetual futures contracts, suggests that some futures traders are still betting on Bitcoin’s short-term downside. This discrepancy highlights the complex nature of the market, where different segments may hold varying sentiments.

In summary, the continued inflows into Bitcoin ETFs, coupled with a modest market rebound and bullish sentiment in the options market, indicate a growing confidence in Bitcoin. However, the negative funding rate serves as a reminder that the market remains dynamic and subject to varying interpretations. Investors should remain vigilant and conduct thorough research before making any financial decisions.