Bitcoin Spot ETFs have experienced roller coaster inflows and outflows, primarily driven by investors who respond primarily to shifts in macroeconomic queues.
But following the US Federal Reserve’s decision not to change interest rates, a new wave of optimism wiped out the market. The move appears to have reassured investors and rekindled the institutional appetite for BTC-backed funds.
Bitcoin ETF bounces
The week started strong. Monday’s inflow totaled $425.45 million across the BTC spot ETF. However, the bullish momentum was suspended on Tuesday as institutional investors pulled capital from the market ahead of the Federal Open Market Committee (FOMC) meeting. The pullback brings net flow to $85.64 million.
However, the trend changed on Wednesday thanks to the Fed’s decision to hold interest rates. The announcement sparked a sharp rebound in investor confidence, driving a fresh inflow of $142.31 million into the BTC ETF.
Total Bitcoin Spot ETFs inflows. Source: SosoValue
On May 7, Ark Invest and 21Shares’ARKB recorded the largest daily inflows, totaling $5,773 million, bringing the total cumulative net inflow to $2,680 million.
The second largest daily influx was recorded by Fidelity’s FBTC, with $39.92 million participating in the fund. The total historical net inflow of FBTC is currently at $11.644 billion.
No funds recorded net outflows on Wednesday, according to Sosovalue.
Options and futures control the Bitcoin Bulls
New optimism extends beyond the influx to ETFs. BTC has grown 2% over the past 24 hours and is currently trading at $98,888. This price surge is accompanied by a positive funding rate, indicating an increase in leveraged strengths.
Bitcoin funding rate. Source: Coinglass
At press, this is 0.0042%. Funding rates are periodic charges exchanged between long-term and short-positions in permanent futures contracts to continue to match the spot market. When this is positive, traders hold their long positions pay shorts, indicating that bullish sentiment dominates the BTC market.
However, it is important to note that despite this, open interest in BTC futures has declined by 0.18% over the past day. This suggests that traders are largely optimistic, but some leveraged positions may be closed to make a profit as BTC soars.
BTC futures are open to interest. Source: Coinglass
meanwhileI also caught a trader A bullish virusThe US option market. Demand for call options has skyrocketed, exceeding puts, indicating traders are increasingly positioning.
Interested in BTC options. Source: Deribit
These trends suggest that there is a growing confidence that BTC may be higher when macro conditions are preferred.
