Weekly Inflows into ETFs Decline, but Bitcoin Bulls Remain Resilient

Last week, U.S. bitcoin ETFs recorded a net inflow of over 600 million dollars. While this amount marked a continuation of positive capital movement into digital asset products, it was also the lowest weekly inflow in the past month, signaling investor caution or profit-taking at higher levels.

Investors are more cautious

Between May 12 and May 16, inflows into spot bitcoin ETFs totaled 603.74 million dollars. Although this was a net positive in terms of inflows into these funds, last week’s figure was the lowest weekly inflow in the past month. This highlights a more cautious, yet sustainable, movement of capital into the market.

The slowdown in ETF inflows can be linked to the consolidation of bitcoin’s price during the observed five-day period. During this time, bitcoin traded within a narrow range, facing resistance around 105 thousand dollars while finding consistent support at 103 thousand dollars.

This lack of clear movement likely prompted some investors to be more cautious, resulting in reduced capital inflows into bitcoin ETFs last week.

New highs?

Nevertheless, bullish momentum still exists in the market. The largest cryptocurrency briefly surged to a three-month high of 107.108 dollars during the early hours of the night. Although bitcoin has since corrected to 102 thousand dollars, the optimistic bias remains significant.

The price surge comes alongside an increase in the open interest metric for futures contracts. It currently stands at 70.03 billion dollars, a seven percent increase over the past day.

Open interest refers to the total number of outstanding derivative contracts, such as futures or options, that have not been settled. When open interest rises alongside price, it typically signals that new money is entering the market, supporting the strength of the current trend and could trigger a sustainable price increase in the near future.

Moreover, options market data further supports this optimistic outlook. Today, demand for call options has outpaced puts, indicating a growing demand for bullish positioning.

Despite this, with increased derivative activity and bitcoin not far from its current peak of around 109 thousand dollars, it could reach new highs in the short term.