Outflows from Bitcoin ETFs over the past few months indicated strong bearish sentiment among institutional investors. Last week, however, the tide appeared to be turning as a notable inflow trend was recorded over a three-day period. These inflows into BTC ETFs, which offer long exposure, indicated that investors were anticipating further upside for the digital asset, and the decline in short BTC exposure speaks to this.
ProShares outflows and inflows
The ProShares Bitcoin ETFs are the most popular on the market. The BITO ETF is one that offers long exposure, while the much newer BITI ETF allows investors to benefit from short exposure. Launched in a bear market, BITI grew rapidly in terms of BTC exposure. However, the past week has shown a reluctance on the part of investors to bet against Bitcoin’s price.
BITI outflows for last Friday totaled 1,060 BTC in a single day, the largest outflows the ETF has seen since inception. Furthermore, the outflows would continue into the new week when BITI saw another 425 BTC leave. This reduced BITI’s total exposure to 3,580 BTC on Monday.
BITO ETF registers inflows | Source: Arcane Research
As far as BITO is concerned, there has been all shades of good news over the last week. For three consecutive days of inflows, 1,650 BTC flowed into the ETF. This follows a month of outflows for the ETF, showing greater demand for long exposure to digital assets.
While BITI had seen 1,050 BTC in outflows on Friday, BITO saw inflows of 700 BTC on the same day. It suggests that investors are exiting their short positions and investing in long positions.
Bitcoin not from the forest
While there have been many inflows into long bitcoin ETFs, the numbers still do not suggest a complete reversal of bullish sentiment among investors. BITI’s BTC exposure shows that while there may be some movement to long ETFs, bets against the Bitcoin price still remain on the minds of investors.
BTC drops to $20,000 | Source: BTCUSD on TradingView.com
BITI’s current total exposure is 3,850 BTC, same as it was at the highs in June and July. So while there have been outflows, there is still strong sentiment to continue shorting the digital asset.
BITO had already seen its strongest one-day inflows on Friday, but has yet to fully reverse the bearish trend. Even with such high inflows, the ETF is currently at a three-month low. However, positive from the three-day inflows was a recovery on a CME basis.
Featured image by CryptoPotato, charts by Arcane Research and TradingView.com
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