Bitcoin ETFs Draw $23 Million Inflows as Retail Traders Retreat

TLDR

• Bitcoin ETFs have seen rapid inflows, signaling a potential shift in market dynamics.
• Spot markets have followed the inflows into Bitcoin ETFs, a reversal of the usual trend.
• Retail traders are becoming more negative, expecting Bitcoin prices to fall below $100,000.
• BlackRock’s Bitcoin ETF, IBIT, attracted the largest inflow of $169.5 million this week.
• Despite ETF inflows, Bitcoin prices have remained relatively flat, fluctuating between $111,000 and $113,000.

Money has been flowing back into Bitcoin ETFs rapidly, as retail traders appear to be stepping away from crypto. According to Santiment, this shift is having an impact on spot markets, which have followed ETF inflows. Typically, Bitcoin ETFs lag behind spot markets, but this time, the trend has been reversed, sparking speculation about a potential rally.

Bitcoin ETFs Show Inflows, Spot Markets Flat

Santiment reports that recent Bitcoin ETF inflows have helped ignite spot markets. Bitcoin ETFs saw inflows of $23.3 million on Tuesday across eleven funds, a notable shift from last week’s outflows. This figure, while smaller than previous spikes, marks a reversal of the trend seen last week when the total inflow for four days was just $250 million. BlackRock’s Bitcoin ETF, IBIT, attracted the largest inflow on Tuesday with $169.5 million, countering the outflows from other funds like Fidelity, Bitwise, and ARK 21Shares.

Despite these inflows, spot Bitcoin prices have remained largely flat. Bitcoin has fluctuated between $111,000 and $113,000 over the last few days. The price even reached $113,200 on Tuesday but fell back to $111,500 during the Wednesday morning Asian session. This price movement suggests that the market is still uncertain, despite the growing Bitcoin ETF interest.

Rex-Osprey DOGE ETF Set for Launch

Retail traders have been shifting their outlook on Bitcoin, with many predicting the price could fall below $100,000. Santiment notes that this growing pessimism is a sign of the market moving contrary to traders’ expectations. “As markets move opposite to the crowd’s expectations, these couple of weeks of FUD are an encouraging sign,” they explain. The platform believes the feared large retrace may not happen, potentially signaling the beginning of a new rally.

Investors are also looking forward to the launch of a new product this week. Analysts expect the Rex-Osprey DOGE ETF to hit exchanges soon, marking the beginning of a new era for meme coin ETFs. Bloomberg’s ETF expert Eric Balchunas notes,

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