Bitcoin ETF finally flipped from “net outflows” to “net inflows” this year.
According to Bloomberg, US spot Bitcoin ETFs have recorded cumulative net inflows of about $320 million year to date. Since Aug. 19, when the US Treasury said it would increase long-term bond repo operations, inflows have totaled about $4.6 billion, reversing the prior net outflows for the year. In the same period, Bitcoin rose by roughly 35% to above $86,000; the total market capitalization of crypto assets returned above $3 trillion for the first time since January. Market interpretation is broadly bullish for BTC. The ETF fund return suggests that institutional players are once again willing to take on Bitcoin exposure, while macro liquidity expectations are also aligning to support the rebound in risk assets.
One observation is that institutional fund returns and macro liquidity expectations are moving in the same direction. Another is that the open interest in crypto perpetual contracts has risen to about $160 billion, the highest level since late October last year, meaning short-term volatility may be amplified more easily. For traders, the key isn’t just turning positive for the year, but the buy-side consolidation that has resumed since late August; if daily inflows continue, BTC’s upward momentum is more likely to sustain. The risk is that this rally has already priced in part of the liquidity expectations—if ETF inflows slow down, short-term chase-buying may become more sensitive. Are you more focused on whether ETF capital keeps flowing in, or more focused on changes in open interest in the contracts?
Source: Wu Shuo
#BTC
Figure 1: Bitcoin ETF flips positive for the year-to-date · Source page partial screenshot
Image source: https://www.wublock123.com/news/bloomberg-spot-bitcoin-etf-net-inflows-320m-46b-since-aug-19-68875
According to Bloomberg, US spot Bitcoin ETFs have recorded cumulative net inflows of about $320 million year to date. Since Aug. 19, when the US Treasury said it would increase long-term bond repo operations, inflows have totaled about $4.6 billion, reversing the prior net outflows for the year. In the same period, Bitcoin rose by roughly 35% to above $86,000; the total market capitalization of crypto assets returned above $3 trillion for the first time since January. Market interpretation is broadly bullish for BTC. The ETF fund return suggests that institutional players are once again willing to take on Bitcoin exposure, while macro liquidity expectations are also aligning to support the rebound in risk assets.
One observation is that institutional fund returns and macro liquidity expectations are moving in the same direction. Another is that the open interest in crypto perpetual contracts has risen to about $160 billion, the highest level since late October last year, meaning short-term volatility may be amplified more easily. For traders, the key isn’t just turning positive for the year, but the buy-side consolidation that has resumed since late August; if daily inflows continue, BTC’s upward momentum is more likely to sustain. The risk is that this rally has already priced in part of the liquidity expectations—if ETF inflows slow down, short-term chase-buying may become more sensitive. Are you more focused on whether ETF capital keeps flowing in, or more focused on changes in open interest in the contracts?
Source: Wu Shuo
#BTC
Figure 1: Bitcoin ETF flips positive for the year-to-date · Source page partial screenshot
Image source: https://www.wublock123.com/news/bloomberg-spot-bitcoin-etf-net-inflows-320m-46b-since-aug-19-68875
