Bitcoin ETF inflows are back after the bad phase

Bitcoin ETF inflows are back after the bad phase


Outflows from Bitcoin ETFs in the past two months have indicated a strong downtrend among institutional investors. However, there appears to have been a change in the tide last week when a noticeable flow trend was recorded over a three-day period. These flows into BTC ETFs that provide long exposure showed that investors were expecting more upside for the digital asset, and the drop in BTC short exposure is indicative of that.

ProShares outflows and streams

ProShares Bitcoin ETFs are the most popular on the market. It is the BITO ETF that provides long exposure, while the much newer BITI ETF allows investors to benefit from short exposure. BITI, which launched into a bear market, has grown rapidly in terms of exposure to BTC. However, the past week showed a reluctance on the part of investors to bet on the price of Bitcoin.

Last Friday’s BITI outflows totaled 1,060 BTC in a one-day period, the largest outflows recorded by the ETF since its launch. Moreover, outflows will continue into the new week, when BITI saw another 425 BTC leave. This brings the total exposure of BITI down to 3,580 BTC as of Monday.

Bitcoin ETFs

BITO ETF records inflows | Source: Arcane Research

As for BITO, it’s been all shades of good news for the past week. Three consecutive days of inflows saw 1,650 BTC flow into the ETF. This comes after a month of outflows from the ETF, which shows further demand for the long exposure of the digital asset.

While BITI saw an inflow of 1,050 BTC on Friday, BITO recorded an inflow of 700 BTC on the same day. It indicates that investors are withdrawing from their short positions and placing them in long positions.

Bitcoin is not out of the woods

Although there has been a lot of influx into long Bitcoin ETFs, the numbers still don’t indicate a complete shift in bullish sentiment among investors. The exposure of BITI to BTC shows that while there may be some movement to long ETFs, betting on the price of Bitcoin is still on the minds of investors.

Bitcoin price chart from TradingView.com

BTC declines to $20,000 | Source: BTCUSD on TradingView.com

BITI’s current total exposure is at 3,850 BTC, the same as it was at its peak in June and July. So even though there are outflows, there is still a strong sense of continuing to sell digital assets.

BITO posted its strongest one-day flows on Friday, but it did not completely reverse the downtrend. Even with such high inflows, the ETF is currently standing at its lowest level in three months. However, the recovery was positive from the three-day inflows on the basis of CME.

Featured image from CryptoPotato, charts from Arcane Research and TradingView.com

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