tl;dr
Bitcoin spot ETFs saw volatile inflows and outflows throughout the week, influenced by changing macroeconomic signals. After the US Federal Reserve kept interest rates steady, investor confidence rebounded, driving renewed inflows into BTC-backed ETFs. Monday saw $425.45 million in inflows, followed...
Bitcoin spot ETFs experienced a turbulent week marked by volatile inflows and outflows, largely influenced by macroeconomic developments. Investor confidence notably rebounded following the US Federal Reserve’s decision to hold interest rates steady, sparking renewed institutional interest in BTC-backed funds.
The week began with robust inflows of $425.45 million on Monday, driven by anticipation and optimism. However, this momentum paused on Tuesday as investors withdrew $85.64 million ahead of the Federal Open Market Committee (FOMC) meeting. The Fed’s announcement to keep rates unchanged on Wednesday reversed this trend, resulting in an additional $142.31 million flowing into Bitcoin spot ETFs.
Highlighting the strong institutional appetite, Ark Invest’s ARKB saw the largest single-day inflow of $57.73 million, bringing cumulative net inflows to $2.68 billion. Fidelity’s FBTC followed closely with $39.92 million on the same day, accumulating $11.64 billion in net inflows historically.
Parallel to ETF activity, Bitcoin’s price surged 2% to $98,888, supported by a positive funding rate in the futures market at 0.0042%. This indicates a dominance of leveraged long positions, signaling bullish sentiment among traders. The funding rate reflects periodic payments between futures market participants; a positive rate shows longs paying shorts, evidencing optimism.
Despite this bullish trend, futures open interest dipped slightly by 0.18%, suggesting some profit-taking among leveraged traders amid the rally. Complementing futures activity, options market data revealed increased demand for call options over puts, underscoring growing trader conviction in BTC’s upward potential if favorable macroeconomic conditions persist.
Overall, these developments portray a landscape where institutional investors and leveraged traders alike are cautiously optimistic about Bitcoin’s trajectory, tethered closely to macroeconomic signals and central bank policies. As the market digests these dynamics, investors are poised to watch how Bitcoin’s interplay with interest rate decisions and global economic trends unfolds.