Investor confidence in Bitcoin ETFs has strengthened with over $100 million in inflows on Thursday, led by BlackRock and Fidelity. Despite this positive trend, a negative funding rate suggests caution among some traders regarding Bitcoin’s price. Notably, BlackRock’s ETF saw the largest inflow, while Bitcoin’s price edged up to $84,497, amid rising open interest and mixed sentiment in key metrics.
As investor confidence in Bitcoin ETFs rebounds, over $100 million was deposited into the sector on Thursday following a midweek dip. Major firms such as BlackRock and Fidelity contributed significantly to these inflows, indicating rising open interest and increased market activity. Despite positive inflows, a negative funding rate reflects ongoing caution among some traders betting on a potential decline in Bitcoin’s price.
Thursday’s influx of over $100 million marked a turnaround for Bitcoin ETFs, particularly following a withdrawal of $169.87 million on Wednesday, the week’s only negative day. Overall, Bitcoin ETFs reported a net inflow of $15.85 million since Monday, with institutional investors displaying renewed confidence, hinting at a robust market close.
Data reveals that BlackRock’s Bitcoin ETF, IBIT, led with a daily net inflow of $80.96 million, raising its total inflow to an impressive $39.75 billion. Fidelity’s FBTC ETF also performed well, garnering a net inflow of $25.90 million, demonstrating sustained institutional interest in Bitcoin despite mixed short-term indicators.
Bitcoin’s price experienced a slight increase of 0.1% to $84,497 over the last 24 hours, alongside a notable rise in trading activity, as indicated by an increase in Open Interest. Currently, BTC Futures Open Interest stands at $54.6 billion, reflecting a 2.01% increase from the prior day, suggesting more traders are entering the market.
However, several key metrics reveal a divided sentiment among traders. The funding rate for Bitcoin futures has dipped into negative territory, indicating that traders are compensating those with long positions due to greater demand for them. As of now, the funding rate sits at -0.0006%, signalling some expectations of a potential downturn in Bitcoin’s price.
