Bitcoin ETFs See $381.40M Inflows, Institutional Confidence Surges

Bitcoin ETFs experienced a significant surge in net inflows this week, marking a notable comeback for institutional investors. On Monday, Bitcoin ETFs recorded over $380 million in net inflows, the largest single-day inflow since January 30. This influx of capital signals a renewed wave of institutional confidence in Bitcoin, following a period of subdued activity in the ETF market.

On Monday, net inflows in Bitcoin ETFs totaled $381.40 million, the most substantial injection of funds in a single day in nearly 13 weeks. This surge reflects a resurgence in bullish sentiment among institutional investors toward Bitcoin, despite broader market caution.

Ark Invest and 21Shares’ ETF ARKB recorded the largest daily net inflow, totaling $116.13 million, bringing its total cumulative net inflows to $2.60 billion. Fidelity’s ETF FBTC came in second place with a net inflow of $87.61 million, with total historical net inflows now standing at $11.37 billion.

Bitcoin has recorded a modest 1% gain over the past 24 hours. This price surge has prompted an uptick in the count of new open contracts in the coin’s futures market, reflected by its rising futures open interest. At press time, this is at $58.46 billion, climbing 5% over the past day. An asset’s open interest measures its total number of outstanding derivative contracts, such as futures or options that have not been settled or closed. When Bitcoin’s open interest rises along with its price, it indicates that more traders are entering the market, either opening new long or short positions. This is a bullish signal confirming growing investor interest in the king coin.

Further, Bitcoin’s funding rate is positive at press time, highlighting the market’s confidence in its future price performance. This currently stands at 0.0068%. When an asset’s funding rate is positive like this, long traders pay short traders. This means that more traders are betting on Bitcoin’s going up, reflecting bullish market sentiment. Moreover, today’s high demand for calls in the Bitcoin options market supports this bullish outlook. According to Deribit, Bitcoin’s put-to-call ratio is currently at 0.71. This indicates that more call options are traded than puts, suggesting a bullish bias among options traders. This low ratio reflects growing investor confidence and expectations of upward price movement.