On Tuesday, the Bitcoin spot ETF reversed three consecutive days of outflows, recording over $350 million in net inflows.
This reversal occurred despite BTC closing in a downtrend, emphasizing a change in investor sentiment and suggesting that bullish confidence could be strengthened.
Institutions Buying Bitcoin ETF…Sideways Market
According to SosoValue, on Tuesday, investors newly invested $378 million in BTC-backed funds, raising the total net asset value of all BTC spot ETFs to $128 billion.
BTC's spot price is struggling to gain momentum and continues its recent sideways movement. ETF demand appears to be decoupled from short-term price movements. The inflows suggest that institutional investors are buying on dips even when the market does not show immediate momentum.
Ark Invest and 21Shares' ETF ARKB recorded the largest daily net inflow, reaching $140 million and bringing its total cumulative net inflow to $2.51 billion.
Fidelity's ETF FBTC recorded the second-highest daily net inflow at $137 million. The ETF's total historical net inflow now stands at $11.69 billion.
Decrease in Open Interest…Cautious Market Atmosphere
Today, BTC futures open interest decreased, indicating that many derivatives traders are withdrawing from the market. At the time of reporting, it was $78.9 billion, a 3% drop over the past day.
Open interest measures the total number of active futures or options contracts that are not settled or liquidated. When BTC's price is trapped in a sideways trading range and declines, it indicates that traders are liquidating positions and withdrawing from the market due to uncertainty or lack of confidence.
This decrease in participation signals weakening momentum and lowers the likelihood of a BTC price breakout in the short term.
However, call option demand surged today, suggesting that some traders are anticipating an upward movement. When call demand exceeds put demand, it reflects growing optimism among traders and hedging for potential breakouts.
The current market trend suggests that bullish sentiment is growing, and if market conditions improve, it could set the stage for a broader recovery.
