Bitcoin ETFs See $56.23M Outflow After 8-Day Inflow Streak

On Wednesday, Bitcoin spot ETFs experienced their first net outflow since April 16, marking the end of an eight-day streak of consistent inflows. This outflow amounted to $56.23 million, indicating a potential cooldown in institutional demand after a period of sustained accumulation. Over the previous eight trading sessions, these funds had collectively attracted over $2 billion in net inflows.

This shift in funds flow may be attributed to the consolidation of BTC’s price since April 25. The leading cryptocurrency has traded within a narrow range, facing resistance at $95,427 and finding support at $93,749. The tight consolidation and failure to break key levels have prompted some key investors to de-risk their positions by temporarily withdrawing capital from BTC-backed funds. An extended period of sideways price action introduces uncertainty around short-term momentum, making it challenging to sustain aggressive inflows into BTC ETFs.

Despite the recent price consolidation, derivatives market data reflect a mixed sentiment among traders. Open interest in BTC futures has declined slightly over the past day, signaling reduced activity. This drop suggests that traders are closing out positions rather than opening new ones, reflecting uncertainty or waning conviction in BTC’s short-term price direction. However, the coin’s funding rate remains positive, indicating that long traders are still dominant. As of the latest data, this stands at 0.0039%, confirming the preference for long positions over short ones. This bullish sign indicates that despite BTC’s price stagnancy, many of its futures traders are still opening bets in favor of a price rally.

Additionally, the options market shows a higher volume of call contracts than puts, a sign that some market participants will continue to bet on an upward breakout in the near term. The pullback in ETF inflows may reflect profit-taking after a strong April performance, but data from both futures and options markets suggest investors are not turning bearish just yet.

On Wednesday, BlackRock’s iShares Bitcoin Trust (IBIT) was the only fund to buck the trend, recording a net inflow of $267.02 million, bringing its total historical net inflow to $42.65 billion. Fidelity’s FBTC saw a $137.49 million exit from the fund in a single day. Despite the drawdown, FBTC’s total historical net inflow stands at $11.63 billion.