On Tuesday, institutional investors continued to allocate capital to spot Bitcoin ETFs, marking the eighth consecutive day of inflows.
The total net inflow of funds into all Bitcoin ETFs listed in the U.S. exceeded $170 million in a day, underpinning the bullish sentiment that has taken hold of the market since last week.
Bitcoin ETFs record eighth consecutive day of inflows
Yesterday, Bitcoin-backed funds recorded another net inflow of $172.78 million. This indicates sustained confidence in this asset class. BlackRock's iShares Bitcoin Trust (IBIT) once again topped the list, recording the largest daily inflow among all issuers. On Tuesday, the fund recorded a daily net inflow of $216.73 million, bringing its total historical net inflow to $42.39 billion.
IBIT consistently dominates in recent sessions, reflecting BlackRock's influence in the crypto ETF space and sustained institutional trust in its offerings.
Meanwhile, Bitwise's spot Bitcoin ETF (BITB) recorded the largest net outflow among all issuers on Tuesday, with an outflow of $24.39 million. However, the total historical net inflow of BITB remains strong at $2.05 billion.
Reduction of leverage in the Bitcoin market
Open interest (OI) in the Bitcoin futures market experienced a slight decline today. This indicates some cooling among leveraged positions, as some traders close their positions. At the time of publication, it stands at $61.81 billion, down 3% over the last 24 hours. During this period, the price of Bitcoin increased by 1%.
When the price of an asset rises and open interest decreases, traders are taking profits or reducing risks, indicating caution despite the rise. This trend points to a lack of confidence in the Bitcoin rally, as fewer participants are willing to take new leveraged positions.
However, the overall sentiment in the market remains optimistic. The Bitcoin funding rate currently stands at 0.004%, indicating that long positions are willing to pay for leveraged support. The funding rate is a periodic payment between traders holding long and short positions in perpetual futures contracts, used to keep the contract price aligned with the spot market. When the funding rate is positive, longs pay shorts, indicating that more traders are betting on price increases, which is a sign of bullish sentiment in the market.
Moreover, the increase in call option volume indicates that traders are preparing for further price increases of the token. Although activity in the derivatives market shows slight signs of uncertainty, the continuous inflow of funds into spot Bitcoin ETFs suggests a market that remains bullish in the short term.#Write2Earn #BinanceSquare #BinanceAlphaAlert #Binance #crypto $BTC