This week, the Bitcoin ETF market saw its first positive inflows since early April, signaling potential renewed interest from institutional investors.
First Positive Movement Since April
On Monday, U.S. Bitcoin ETFs attracted $1.47 million in net inflows, marking the first positive movement since April 2. Although the amount appears modest, this shift may indicate a returning confidence among institutional investors in regulated Bitcoin access.
Last week alone saw $713.3 million in outflows due to pressure in the cryptocurrency market, partly triggered by escalating trade tensions following comments from Donald Trump. However, Monday's inflows suggest a slow improvement in sentiment.
Derivatives Market Shows Increased Activity
The Bitcoin derivatives market is showing increased activity. Futures open interest climbed by 2% to reach $56 billion, typically a sign of growing market engagement. Still, the funding rate has turned negative, indicating traders are leaning bearish and paying to maintain short positions. On the options front, a higher number of puts over calls reflects cautious sentiment.
Traders Remain Skeptical
Despite the inflows, skepticism remains. Traders appear divided—some are eyeing recovery, while others are bracing for another dip.
Currently, the Bitcoin ETF market is showing signs of recovery after a lengthy period of outflows. However, despite the positive inflows, the overall sentiment in the market remains mixed, possibly indicating instability in the future.
