Second Day of Positive BTC ETF Inflows Reflects Renewed Market Confidence

Bitcoin ETFs recorded $76.42 million of net inflows on Tuesday, marking a shift in institutional sentiment following previous outflows. BlackRock’s IBIT and Ark Invest’s ARKB led inflows. Despite a 3% price decline in Bitcoin, optimisms return as funding rates turn positive and call options outnumber puts, indicating bullish sentiment in the market.

On the second consecutive day of net inflows, spot Bitcoin ETFs recorded an influx of $76.42 million, reflecting a significant shift in institutional investor sentiment from previous weeks. This change follows a period of substantial outflows, indicating that institutional interest is recovering and investors are reassessing their positions in light of potential gains.

The inflows gained momentum as the day saw a continuation from Monday’s $1.47 million. The return to positive inflows into BTC ETFs points to renewed confidence in Bitcoin’s long-term viability, despite short-term price fluctuations that have caused market instability. BlackRock’s ETF, IBIT, led the charge with the highest inflow of $38.22 million, bringing its total to $39.64 billion.

Following closely was Ark Invest and 21Shares’ ARKB, which attracted $13.42 million in net inflows, increasing its historical total to $2.60 billion. Meanwhile, the cryptocurrency market faced a downturn with a $40 billion decrease in its total market capitalisation over 24 hours, as Bitcoin’s price fell by 3% to $83,341. The futures open interest for BTC also dropped by 5%, suggesting traders are closing existing leveraged positions amidst market uncertainties.

Despite this downturn, not all indicators are negative. The funding rate for BTC flipped to a positive 0.0032%, suggesting that futures traders are still optimistic, with many choosing to open long positions in anticipation of a market rebound. Additionally, the number of call options in the BTC options market has exceeded put options, further reflecting a bullish outlook among traders who expect future price increases.