Yesterday, Bitcoin exchange-traded funds (ETFs) recorded over $85 million in inflows. This marked the fourth consecutive day of net positive movement into the asset class.
However, while the continued inflows suggest a degree of investor confidence, daily inflow volume continues to fall as BTC struggles to regain bullish momentum.
BTC ETFs Lose Steam as Profit-Taking Accelerates
BTC closed at a low of $105,671 on Thursday as sellers continued to offload holdings to lock in profits from the recent rally. This ongoing wave of profit-taking has dampened institutional interest, contributing to the noticeable decline in daily ETF inflow volumes.
Net inflows into BTC-backed funds totaled $86.31 million yesterday. While this reflects continued investor interest, it also highlights the gradual slowdown in daily inflow momentum as BTC’s price remains under pressure.
Total Bitcoin Spot ETF Net Inflow. Source: SosoValue
Fidelity’s spot Bitcoin ETF FBTC recorded the highest net outflow among all BTC ETFs yesterday, with $197.19 million exiting the fund. FBTC’s total historical net inflows currently sit at $11.49 billion.
Bitcoin Slides, But Derivatives Traders Remain Bullish
The king coin is down 3% over the past day, extending the multi-day slide that has stalled short-term bullish sentiment. Interestingly, the decline in spot prices has not yet deterred traders in the derivatives market.
According to Coinglass, BTC’s funding rate across cryptocurrency exchanges remains positive despite recent price headwinds. At press time, this is 0.0019%.
![]BTC Funding Rate](https://public.bnbstatic.com/static/content/square/images/266068bf8c7c4ac8a540b75c7839e8dd.png)
BTC Funding Rate. Source: Coinglass
The funding rate is a periodic payment exchanged between long and short traders in perpetual futures contracts to keep prices aligned with the spot market. When it is positive, long traders are paying shorts, indicating bullish sentiment and higher demand for leveraged long positions.
Moreover, on the options front, the demand for calls outweighs that for puts, indicating that many market participants expect a rebound or are positioning for upside volatility in the near term.
BTC Options Open Interest. Source: Deribit
With inflows tapering off and BTC under pressure, the key question heading into next week is whether this resilient ETF trend will hold, or whether the market will record net outflows as investor sentiment further cools.
