Bitcoin-Backed Exchange-Traded Funds (ETFs) Shed $56 Million, Halting an Eight-Day Stream of Inflows as Per ETF Reports
On a hump day, Bitcoin ETFs witnessed their first net outflow since mid-April, ending an impressive eight-day streak of continuous inflows. This shift in funds flow could be a sign of cooled institutional demand after a prolonged accumulation period.
Yesterday, BTC ETFs experienced a combined outflow of $56.23 million – a stark contrast to the over $2 billion in net inflows recorded during the previous eight trading sessions.
Bitcoin ETFs: A Rollercoaster Ride
Yes, you heard it right. One of the biggest players in the game, BlackRock's iShares Bitcoin Trust (IBIT), bucked the trend, announcing a net inflow of $267.02 million on April 30. Conversely, Fidelity's FBTC saw a hefty exit of $137.49 million in a single day. While this might seem like a setback, FBTC's total historical net inflow still stands at a whopping $11.63 billion.
The Derivatives Market: Balancing Act
Despite BTC's recent consolidation, the derivatives market is presenting a mixed bag of sentiment. Open interest in Bitcoin futures has taken a slight dip, indicating reduced trader activity. However, the coin's funding rate remains positive, signaling a preference for long positions.
This bullish indicator suggests that despite BTC's price stagnation, many futures traders are still optimistic about a price rally. Interestingly, the options market is flooded with calls, indicating that some market participants are betting on an upward breakout in the near term.
So, while the ETF outflows may hint at profit-taking or regulatory uncertainties, the derivatives market suggests that investors are not bearish just yet.
Time to Take the Wheel
Want to join the ride? Here are some platforms to get you started:
- Uphold: With early access to new tokens, one-step trading, and multi-asset support, Uphold makes crypto trading a breeze.
- eToro: An all-in-one trading platform, eToro offers a wide range of crypto, stocks, and commodities for your investment portfolio.
- Plus500: For those seeking an intuitive trading experience, Plus500 provides access to numerous financial instruments, including Bitcoin and other cryptocurrencies.
- Coinbase: One of the oldest and most trusted cryptocurrency exchanges, Coinbase offers a simple and secure environment for your crypto trades.
- Moonacy: A DeFi portal that connects users with a variety of popular DeFi projects.
Investing in crypto comes with its risks, so always do your own research and consult with a professional before making any financial decisions. Stay informed with the latest crypto news and insights to make the most out of your investment journey!
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- The shift in Bitcoin ETFs' funds flow in April could be a sign of cooled institutional demand, following a prolonged accumulation period.
- Yesterday, there was a combined outflow of $56.23 million from Bitcoin ETFs, contrasting the over $2 billion in net inflows recorded in the previous eight trading sessions.
- BlackRock's iShares Bitcoin Trust (IBIT) bucked the trend with a net inflow of $267.02 million on April 30, while Fidelity's FBTC saw a hefty exit of $137.49 million in a single day.
- The derivatives market for Bitcoin presents a mixed bag of sentiment, with open interest in Bitcoin futures taking a slight dip, indicating reduced trader activity.
- However, the coin's funding rate remains positive, signaling a preference for long positions, and the options market is flooded with calls, indicating bets on an upward breakout in the near term.
- Uphold, eToro, Plus500, Coinbase, and Moonacy are platforms available for those interested in joining the crypto trading ride.
- Investing in crypto comes with its risks, so always do your own research and consult with a professional before making any financial decisions.
