Bitcoin ETFs Lose $56 Million, Ending 8-Day Chain of Inflows | ETF News

On Wednesday, Bitcoin spot ETFs recorded their first net outflow since April 16, ending an eight-day streak of stable inflows.

This outflow marked a notable reversal after these funds had attracted over $2 billion in net inflows during the previous eight trading sessions.

Bitcoin ETFs Face $56 Million Withdrawal Amid Sideways Price Movement

Yesterday, the total net outflow from Bitcoin spot ETFs was $56.23 million. This sudden change in capital flow suggests institutional demand may be cooling after a prolonged accumulation period.

BTC's sideways movement since April 25 may have driven this withdrawal. Analyzing the one-day BTC/USD chart reveals the leading coin has been trading in a narrow range since then, facing resistance at $95,427 and finding support at $93,749.

With BTC stagnating and unable to break key levels, some key investors are choosing to reduce risk by temporarily withdrawing capital from BTC-supporting funds. A prolonged price stagnation accompanied by short-term momentum uncertainty makes maintaining strong inflows into BTC ETFs more challenging.

On Wednesday, BlackRock's iShares Bitcoin Trust (IBIT) was the only fund bucking the trend, recording a net inflow of $267.02 million, raising its historical net inflow to $42.65 billion.

Fidelity's FBTC fund experienced a $137.49 million outflow in just one day. Despite the withdrawal, FBTC's historical net inflow remains at $11.63 billion.

BTC Derivative Market Shows Mixed Sentiment

Meanwhile, despite recent sideways price movement, derivative market data reflects mixed sentiment among traders. BTC Futures open interest slightly decreased over the past day, indicating reduced activity.

At the time of writing, this figure was $61.50 billion, noting a 1% decrease over the past day. Such a decline in open interest suggests traders are closing positions rather than opening new ones. This trend reflects uncertainty or diminished confidence in BTC's short-term price direction.

However, the funding rate remains positive, indicating long-term traders still dominate. At this moment, the rate is 0.0039%, confirming a preference for long-term positions over short-term ones.

This bullish signal suggests that despite BTC's stagnation, many futures contract traders are still betting on a potential price increase.

Additionally, the options market shows higher call contract volume compared to put contracts, indicating some market participants will continue betting on a potential short-term price breakout.

The ETF inflow withdrawal might reflect profit-taking after a strong April, but data from both futures and options markets suggests investors have not yet shifted to a bearish trend.