Bitcoin ETF unexpectedly stalls: A calm before the storm?

In the past week, Bitcoin ETF funds listed in America recorded a total net outflow of more than 120 million USD. Although this figure reflects the continued cautious sentiment from investors, it also shows a slight improvement compared to the previous week and may be an initial signal for the return of optimistic sentiment.

Capital outflow from Bitcoin ETF cools down after a large "dump" on June 5

According to data from SosoValue, the net outflow from spot BTC ETF funds during the period from June 2 to June 6 amounted to a total of 129 million USD. The slowdown in outflows indicates that while some institutions are still cautious, groups of risk-tolerant investors have also emerged.

! Total net inflows into spot Bitcoin ETF | Source: SosoValueIn the past week, the day with the strongest withdrawal was on June 5 – coinciding with the time when the BTC price fell to the lowest level of the day at $100,372. This decline has caused the sentiment of the entire ETF market to slacken, with net cash outflows during the day reaching 278.44 million USD.

However, the significant decrease in capital withdrawal during the subsequent trading session shows that the market is gradually showing signs of recovering its resilience – even though the price of Bitcoin has not yet made any significant breakthrough.

Futures contracts turn negative, but options still maintain bullish expectations

As of the time of writing, the price of BTC has recorded a slight increase of 2%, trading around the mark of 107,000 USD. The "king of the coin world" continues to maintain a sideways trend, reflecting the lack of clear direction in the entire crypto market.

Meanwhile, the funding rate on large perpetual futures markets has turned negative (currently at -0.0056%), indicating that many traders are betting on the possibility of prices continuing to decline in the short term.

Funding rate of Bitcoin | Source: CoinglassFunding rate is the periodic payment between parties in perpetual futures contracts to keep the contract price close to the spot price. When the funding rate is negative, it means more traders are placing short orders, reflecting an increasing bearish trend in the market.

However, data from the BTC options market brings a glimmer of hope. According to the Deribit exchange, demand for the ( call option ) remains high, indicating that professional investors still maintain an optimistic outlook – despite conflicting short-term indicators.

! OI of Bitcoin options contract | Source: DeribitOverall, although weekly inflows from Bitcoin ETFs remain negative, the slowing down of withdrawal pressure along with bullish positions appearing in the derivatives market suggests that investors are starting to prepare for a possible reversal scenario.

Justin