On Monday, major Coin Bitcoin spiked to an intraday high of $108,952 as renewed purchase rights pushed their assets highly. The rally sparked significant activity across the ETF, supported by the BTC.
The Bitcoin ETF recorded a combined net inflow of over $400 million that day, with BlackRock’s IBIT leading the fee. Today, Kingcoin has recorded a modest 1% profit, and on-chain skepticism is growing among leveraged traders.
ETF inflows will skyrocket with the Bitcoin Rally
Bitcoin climbed to a mid-day high of $109,952 on Monday as new investors’ profits fueled a wave of buying pressure.
This momentum revival helped to drive a surge in inflows into US-registered spot BTC ETFs that saw its largest daily inflow since June 10th, $408.59 million net capital injection.
Total bits
Total Bitcoin Spot ETFs inflows. Source: SosoValue
BlackRock’s iShares Bitcoin Trust (IBIT) led the ETF pack with net inflow, claiming control among facility-grade crypto-invested vehicles. On a per-sovolution basis, Monday’s fund inflow reached around $267 million, bringing the total historic net inflow to $50.3 billion.
This strong influx suggests that institutional investors are barely upset by short-term volatility, continuing to see BTC as a valuable portfolio hedge.
BTC is stable, but traders hedge the downsides
BTC is now 1% less than ever today, but the derivatives market is flashing warning signals. The funding rate has once again turned negative, reflecting new bearish feelings among permanent futures traders. According to Coinglass, this is currently 0.0007%.
BTC funding rate. Source: Coinglass
Funding rates are periodic payments exchanged between traders in permanent futures markets to align contract prices with spot markets. If the funding rate is negative, the short trader is paying the long trader, indicating that bearish sentiment dominates the market.
If this remains, it could exacerbate downward pressure on the coin’s price.
Meanwhile, options traders are also leaning towards defensiveness. Data from Deribit shows an increase in demand for Put contracts for calls today, suggesting investors are seeking negative side protection amid growing uncertainty.
Interested in BTC options. Source: Deribit
The influx of ETFs indicates strong institutional demand, but the underlying market signals suggest that traders are cautiously stomping. With fundraising rates negative and options gaining traction, investors may be spoofing short-term volatility despite the bullish inflow story.
