Bitcoin ETF inflows bounced back sharply on Tuesday, reversing three straight days of outflows. Investors poured over $350 million into BTC-backed funds, despite Bitcoin’s spot price ending the day in the red.
This move signals a potential shift in sentiment, showing that institutional interest in BTC remains strong—even during price stagnation.
Institutions Buy the Dip as Market Stalls
According to SosoValue, $378.04 million flowed into Bitcoin ETFs on Tuesday alone. That pushed the total net asset value of all spot BTC ETFs to $128.13 billion.
Bitcoin’s price has been trading sideways with limited momentum. However, ETF demand seems to be decoupling from daily price action, as institutions appear to be buying the dip, anticipating long-term gains.
ARKB and FBTC Lead the Inflows
Among all funds, ARKB by Ark Invest and 21Shares saw the highest net inflow, raking in $140 million. The fund’s total net inflow now stands at $2.51 billion.
Fidelity’s FBTC came in second, pulling in $137 million in new capital. The ETF now boasts $11.69 billion in cumulative net inflows—further proof of institutional confidence in Bitcoin’s future.
Mixed Sentiment in the Derivatives Market
While ETF activity is heating up, open interest in BTC futures dropped to $70.89 billion, down 3% in the past 24 hours. This suggests that some traders are closing positions, likely due to uncertainty.
A drop in open interest during sideways price movement usually reflects caution. It signals that many traders are not yet ready to commit, reducing the likelihood of a breakout in the immediate future.
Traders Still Eyeing a Breakout
Despite declining futures activity, demand for call options has surged. Calls are financial instruments that let traders bet on rising prices. When their demand rises over puts, it indicates growing optimism.
This spike in calls suggests that some market participants are still positioning for upside, possibly hedging against a sudden rally if momentum returns.
