US-listed spot Bitcoin ETFs have continued to post steady inflows for the second consecutive week. This has happened despite escalating geopolitical tensions in the Middle East and persistent pressure on BTC’s spot price.
The trend, marked by occasional dips in daily inflow volume, suggests that institutional investors remain resilient in their conviction that BTC and its associated products serve as reliable hedges during volatile market conditions.
Bitcoin ETFs See $390 Million Inflows
On Wednesday, BTC ETFs recorded net inflows of nearly $390 million, marking the eighth consecutive day of net positive movement into the asset class. The figure represents an 80% surge from the $216 million recorded just the day prior, highlighting a renewed wave of institutional investor interest.
This uptick in inflows coincided with BTC briefly climbing above the key $105,000 mark during yesterday’s trading session. Although BTC has since retraced slightly, down around 0.44% at press time, it continues to hold within this price range, reflecting relative strength.
BlackRock’s spot BTC ETF IBIT recorded the highest net inflow among all BTC ETFs yesterday, with $279 million entering the fund. At press time, IBIT’s total historical net inflow is $51 billion.
Traders Turn Bullish on Bitcoin
With BTC attempting to stabilize around the $105,000 price range today, derivatives data paints a cautiously optimistic picture. For example, the coin’s funding rate for perpetual futures remains positive, signaling bullish sentiment among traders. As of this writing, this is at 0.0032%.
The funding rate is a periodic payment between traders in perpetual futures contracts. It keeps the contract price aligned with the spot price.
When an asset’s funding rate is positive like this, long-position holders are paying shorts, indicating that bullish sentiment dominates the market.
Moreover, options market activity shows a noticeable spike in call option demand today, a trend associated with bullish expectations. This hints at growing sentiment for a potential reversal in BTC’s price in the near term.
As global uncertainty lingers, the continued momentum in Bitcoin ETF flows is a compelling indicator of the asset’s store of value in turbulent times.
Disclaimer
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Abiodun Oladokun