Spot Bitcoin ETFs attracted funds again on Thursday, coinciding with the coin's price rising above $100,000 for the first time since February.
None of the large ETFs recorded outflows during yesterday's session, confirming the renewed confidence of institutional investors in the long-term prospects of the asset.
Bitcoin ETFs are attracting funds again
Yesterday, Bitcoin ETFs recorded a net inflow of $117.46 million, which is 17% lower compared to the previous day when it was $142.31 million. Although the slight decrease may indicate profit-taking after BTC exceeded $100,000, the ongoing inflow of funds still reflects growing investor confidence in the leading cryptocurrency.
Net inflow of spot Bitcoin ETFs. Source: SosoValue
On Thursday, the iShares Bitcoin Trust (IBIT) from BlackRock led the trend, recording the highest daily inflow among all ETF issuers. The fund attracted $69 million in one day, increasing its total historical net inflow to $44.35 billion. Fidelity's ETF — FBTC — came in second with a daily net inflow of $35.34 million. Its total historical net inflow now stands at $11.67 billion. None of the 12 ETFs recorded net outflows yesterday.
BTC rally fuels excitement in futures
The open interest in the futures market at the time of writing is $67.45 billion, up 5% in the last day. When the open interest of an asset rises along with its price, it indicates an influx of new money into the market, suggesting strong bullish momentum.
Open interest in BTC futures. Source: Coinglass
Additionally, the BTC funding rate reached its highest level since February 28, reflecting high demand for long positions among traders. At the time of writing, it stands at 0.0109%. This means that traders with long positions are paying a premium to hold their trades, which may strengthen bullish sentiment in the BTC market in the short term.
BTC funding rate. Source: Coinglass
However, despite investor optimism in ETFs and futures traders, the options market remains cautious. Data shows increasing demand for downside protection, with heightened activity around put options.
Open interest in BTC options. Source: Deribit
Mixed sentiments may impact short-term price fluctuations as markets assess the possibility of a BTC rally above $100,000 and decide whether it can continue.