Bitcoin (BTC) Spot Exchange-Traded Funds (ETFs) Saw Growth

Bitcoin spot exchange-traded funds (ETFs) saw growth on Wednesday as these products recorded another day of significant inflows, exceeding $600 million.

Bitcoin (BTC) spot exchange-traded funds (ETFs) saw strong gains on Wednesday as these products clocked another day of massive outsized inflows, exceeding $600 million.

Yesterday’s figure marks the sixth straight day of net inflows into BTC spot ETFs, a signal of growing investor optimism in the leading digital asset.

Bitcoin ETF Inflows Climb 85% Amid Bullish Run Above $110,000

BTC’s break above the $110,000 psychological price point on Wednesday saw notable implications for spot ETFs, as investors channeled new capital into these funds. According to SosoValue, a total of $608.99 million was invested by investors in these funds, pushing the net asset value of all BTC spot ETFs to $129.02 billion.

This marks an 85% increase from Tuesday’s figure of $329 million, and also saw investors pour in new capital for the sixth straight day into BTC spot exchange-traded funds, a sign of growing optimism in the coin.

BlackRock’s ETF IBIT saw the largest daily net inflow, clocking in at $530.63 million, pushing its total cumulative net inflows to $46.68 billion.

Fidelity’s ETF FBTC saw the second-highest net inflow of the day, clocking in at $ 23.53 million. The ETF’s total historical net inflows now stand at $11.83 billion.

Bitcoin Rallies To Fresh Record; Options Traders Show Cautious Optimism

During Thursday’s early Asian session, BTC rose to a new all-time high of $111,880. Although it has since seen a minor pullback to exchange hands at $111,618 at the time of writing, technical readings are still showing that bullish pressure is lingering in the markets.

The uptick in price is also being reflected in the derivatives market, where demand for long positions has surged. According to Coinglass, BTC’s funding rate currently stands at 0.018%, its single-day highest value since February 22.

The funding rate is a recurring fee that traders on perpetual futures markets pay to keep the contract prices aligned with the asset’s spot price. A high funding rate shows that more traders are opening long positions, and in this case, it’s a key indicator of bullish investor sentiment.

However, this also puts more emphasis on the potential for a price correction, and traders in the options market appear to have factored this into their trades.

Data from Deribit shows that BTC options traders are still displaying a balanced sentiment, with a near-equal demand for calls and puts. This shows cautious optimism, as traders are adopting a wait-and-see approach to see if the coin will sustain its position above $110,000 or if the recent breakout is a bull trap.

Still, call options, which are bets on the asset rising in price, have a slight edge, showing that there is still more pressure for the asset to move upwards despite the rising bearish activity.