Bitcoin exchange-traded funds (ETFs) recorded net inflows for the second consecutive day on Tuesday, signaling a possible shift in institutional sentiment.
With $76.42 million flowing into BTC funds, this week’s trend marks a reversal of last week’s outflows, which had raised concerns about dwindling investor confidence, BeInCrypto reports.
Institutional inflows return as confidence grows
Tuesday’s $76.42 million inflow into Bitcoin spot ETFs follows a relatively modest start to the week, with $1.47 million recorded on Monday. The return of institutional capital—particularly into BlackRock’s iShares Bitcoin Trust (IBIT) and ARK Invest’s ARKB—is interpreted as a cautious but significant change in the outlook.
BlackRock‘s IBIT continues to dominate the ETF landscape, now recording $39.64 billion in net inflows. The ARKB fund, managed by Ark Invest and 21Shares, also saw strong participation, increasing its cumulative inflows to $2.60 billion.
These renewed inflows may reflect investors’ growing belief in Bitcoin’s long-term utility, particularly amid macroeconomic uncertainty and rising geopolitical tensions. The movement comes after a challenging week of net outflows, which has cooled sentiment across the crypto ETF space.
Market decline weighs on Bitcoin price
Despite the inflow data, Bitcoin itself remains under pressure. The coin has fallen 3% to $83,341 over the past 24 hours, with the total crypto market capitalization declining by $40 billion. Futures market dynamics reflect a shift toward caution – open interest has declined by 5%, indicating that traders are taking less risk and closing leveraged long positions.
The decline in open interest suggests the market is in defensive mode. Liquidations, margin calls, and a general risk aversion have led many short-term traders to reduce their exposure.
Long bets remain active as funding turns positive
While interest in futures may have declined, not all metrics point to a bearish environment. Bitcoin’s funding rate – a fee paid between long and short positions to maintain price parity – has turned positive again and stands at 0.0032% at the time of writing.
This means that a significant segment of traders still expects an upside move and is maintaining or entering long positions. The presence of funding in positive territory typically indicates bullish sentiment among futures participants, even in the face of short-term corrections.
Looking Forward
The resurgence of ETF inflows, led by large institutional players such as BlackRock and Ark Invest, indicates growing interest in Bitcoin exposure despite the current market headwinds. If inflows continue and funding rates remain positive, BTC could find support and recover in the near future.
However, given the high volatility and ongoing macroeconomic uncertainties, traders and investors will continue to closely monitor ETF data and on-chain signals for signs of a broader trend reversal.
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