Bitcoin ETF Momentum Cools, But Derivatives Markets Remain Optimistic | ETF News

Spot Bitcoin ETFs continued their streak of net inflows for the third consecutive day, bringing in over $160 million yesterday. While this marks a healthy continuation of investor interest, it represents a pullback from the $431 million recorded the previous day.

The slowdown comes as BTC tests resistance around the $110,000 mark, stalling upward momentum in the spot market.

ETF Demand Holds Steady for BTC

On Wednesday, net inflows into US-listed spot BTC ETFs totaled $165 million. Although this figure marked continued investor interest in these investment funds, it represented a 61% decline from the $435 million posted on June 10.

Total Bitcoin Spot ETF Net Inflow. Source: SosoValue

The slowdown is largely attributed to BTC’s seeming price stagnation around the $110,000 mark over the past two days. This reflects the coin’s struggle to gain upward momentum amid profit-taking activity.

Yesterday, BlackRock’s IBIT led the pack with the highest daily inflows, totaling $131.01 million, bringing its total historical net inflow to $49.24 billion.

VanEck’s HODL ETF recorded the second-highest daily net inflow, bringing in $15.39 million on Wednesday. According to SosoValue, its total historical net inflows have now reached $968.94 million.

Traders Shrug Off Bitcoin’s Decline as Derivatives Signal Strength

Currently trading at  $107,939, BTC is down 2% over the past day. Despite this decline, sentiment across BTC’s derivatives market remains largely bullish. 

For example, the coin’s futures markets continue to reflect a positive funding rate, an indicator that long positions keep outpacing shorts. As of this writing, this stands at 0.0062%.

BTC Funding Rate. Source: Coinglass

The funding rate is a recurring payment between long and short positions in perpetual futures contracts, designed to keep the contract price aligned with the spot price. A positive funding rate like this means traders holding long positions are paying shorts, indicating that bullish sentiment dominates the BTC market.

Furthermore, an assessment of the BTC options market data shows a notable demand for call contracts.

BTC Options Open Interest. Source: Deribit

This suggests that despite the coin’s lackluster performance over the past day, many traders are positioning for a potential breakout in the near term.