On Wednesday, Bitcoin spot ETFs recorded their first net outflow since April 16, interrupting a streak of eight consecutive days of inflows.
The outflow marked a reversal after funds collectively attracted over $2 billion in net inflows during the previous eight trading sessions.
ETFs outflow amid sideways price action
Yesterday, the total net outflow from Bitcoin spot ETFs was $56.23 million. This sudden change in fund flow suggests a possible cooling in institutional demand after a sustained period of accumulation.
Total Net Inflow of Bitcoin Spot ETF. Source: SosoValue
The consolidation of BTC's price since April 25 may have motivated this pullback. An analysis of the daily BTC/USD chart reveals that the leading coin has been trading within a narrow range since then, facing resistance at $95,427 and finding support at $93,749.
With BTC consolidating tightly and not breaking key levels, some major investors are choosing to reduce risk by temporarily withdrawing capital from BTC-backed funds. A prolonged period of sideways price action brings uncertainty about the short-term momentum, making it harder to sustain aggressive inflows into BTC ETFs.
On Wednesday (30), BlackRock's iShares Bitcoin Trust (IBIT) was the only fund to defy the trend, recording a net inflow of $267.02 million, raising its total historical net inflow to $42.65 billion.
Fidelity's FBTC saw an outflow of $137.49 million from the fund in a single day. Despite the withdrawal, the historical total net inflow of FBTC remains at $11.63 billion.
BTC derivatives market shows mixed sentiment
Meanwhile, despite the recent price consolidation, the derivatives market data reflects a mixed sentiment among traders. The open interest in BTC futures has slightly decreased over the last day, signaling reduced activity.
At the time of publication, this is at $61.50 billion, observing a 1% drop in the last day. A drop in open interest like this suggests that traders are closing positions rather than opening new ones. This trend reflects uncertainty or a decrease in conviction about the short-term price direction of BTC.
Open Interest in BTC Futures. Source: Coinglass
However, the funding rate of the coin remains positive, indicating that long traders are still dominant. At the time of this report, it stands at 0.0039%, confirming the preference for long positions over short ones.
BTC Funding Rate. Source: Coinglass
This optimistic signal indicates that, despite the stagnation of BTC's price, many of its futures traders are still opening bets in favor of a price increase.
Furthermore, the options market shows a higher volume of call contracts than put contracts, a sign that some market participants will continue to bet on an upward breakout in the short term.
Open Interest in BTC Options. Source: Deribit
The pullback in ETF inflows may reflect profit-taking after a strong performance in April, but data from the futures and options markets suggest that investors are not yet becoming pessimistic.
The article 'Bitcoin ETFs lose $56 million, ending an 8-day streak of inflows' was first seen on BeInCrypto Brazil.
