Bitcoin (BTC) Spot ETFs Experience a Rollercoaster Week of Inflows and Outflows

Bitcoin spot ETFs have experienced a rollercoaster week of inflows and outflows, largely driven by investors reacting to shifting macroeconomic cues.

Bitcoin (BTC) spot exchange-traded funds (ETFs) experienced a volatile week of inflows and outflows as investors reacted to macroeconomic cues, Benzinga reports.

After a strong start to the week, with Monday, May 1, seeing a total of $425.45 million in inflows across BTC spot ETFs, and Tuesday, May 2, kicking off with a brief pullback that led to net outflows of $85.64 million as institutional investors pulled capital ahead of the Federal Open Market Committee (FOMC) meeting, the trend took a turn on Wednesday, May 3.

Following the Fed’s decision to leave interest rates unchanged, which sparked a sharp rebound in investor confidence, fresh inflows of $142.31 million were recorded into BTC ETFs.

The largest single-day inflow on May 7 went to Ark Invest and 21Shares’ (NYSE:ARKB) ARKB, which saw a new peak of $57.73 million, bringing its total historical net inflows to $2.68 billion.

The second-largest daily inflow went to Fidelity’s (NYSE:FBTC) FBTC, which saw $39.92 million enter the fund. FBTC’s total historical net inflows now stand at $11.64 billion.

According to SosoValue, no fund saw a net outflow on Wednesday.

Bitcoin Shows Strength As Options Traders Get ‘Greedy’For Good Measure

Bitcoin price has risen by 2% over the past 24 hours, and at the time of writing, trades at $98,888. The cryptocurrency has seen a surge in price, which is also accompanied by a positive funding rate, denoting an increase in leveraged long positions.

At press time, this is at 0.0042%. The funding rate is a periodic fee exchanged between long and short positions in perpetual futures contracts to keep prices aligned with the spot market. When positive like this, traders holding long positions pay shorts, which on the whole, signals which traders are applying more pressure.

However, BTC’s futures open interest has seen a modest decrease of 0.18% over the past day, which signals that while traders are largely optimistic, some leveraged positions may have been closed, possibly to take profit as BTC soars.

Traders have also seen the bullish virus in the options market, with the demand for call options seen surging compared to puts, indicating traders are increasingly positioning for the upside.