Bitcoin ETF Inflows Returns After Abysmal Phase
September 14 2022 - 7:00PM
NEWSBTC
The outflows from bitcoin ETFs in the last couple of months
suggested strong bearish sentiment among institutional investors.
However, there seemed to be a change in the tide last week when a
remarkable inflow trend was recorded over a three-day period. These
inflows into the BTC ETFs that provide long exposure showed that
investors were expecting further upside for the digital asset, and
the decline in short BTC exposure speaks truth to this.
ProShares Outflows And Inflows The ProShares Bitcoin ETFs are the
most popular in the market. The BITO ETF is one that offers long
exposure, while the much newer BITI ETF allows investors to
capitalize on short exposure. BITI, being launched in a bear
market, grew quickly in terms of BTC exposure. However, the past
week has shown a reluctance on the part of investors to bet against
the price of bitcoin. Related Reading: Bitcoin Must Hold This Level
Or Risk Falling To $10,000 BITI outflows for last Friday came out
to a total of 1,060 BTC in a single-day period, the largest
outflows the ETF has recorded since it launched. Furthermore, the
outflows would continue into the new week, when BITI saw another
425 BTC leave. This brought the total exposure of BITI down to
3,580 BTC as of Monday. BITO ETF records inflows | Source: Arcane
Research As for the BITO, it has been all shades of good news in
the last week. A consecutive three days of inflows saw 1,650 BTC
flow into the ETF. This follows a month of outflows for the ETF,
showing more demand for long exposure to the digital asset.
While BITI had seen 1,050 BTC in outflows on Friday, BITO had
recorded inflows of 700 BTC on the same day. It suggests that
investors are pulling out of their short positions and putting them
into long positions. Bitcoin Not Out Of The Woods Even though there
have been a lot of inflows into long bitcoin ETFs, the numbers
still do not suggest a complete shift to the bullish sentiment
among investors. BITI’s BTC exposure shows that even though there
might be some movement to long ETFs, betting against the price of
bitcoin still remains on the minds of investors. BTC declines to
$20,000 | Source: BTCUSD on TradingView.com BITI’s current total
exposure sits at 3,850 BTC, the same as it was back at its June and
July peaks. So even though there have been outflows, there is still
a strong sentiment to continue to short the digital asset. Related
Reading: Investor Sentiment Sees Sharp Positive Spike Following
Crypto Market Recovery BITO had recorded its strongest single-day
inflows back on Friday, but it is yet to reverse the bearish trend
completely. Even with such high inflows, the ETF is currently
sitting at a three-month low. However, a positive from the
three-day inflows was a recovery on the CME basis. Featured image
from CryptoPotato, charts from Arcane Research and TradingView.com
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