Bitcoin Spot ETFs See Muted Inflows As Negative Funding Rates Signal Bearish Sentiment

In a sign of cautious investor sentiment, Bitcoin BTC/USD spot ETFs experienced modest net inflows on Aug. 15, totaling just $11.1 million.

What Happened: This muted enthusiasm comes as funding rates for Bitcoin futures on major exchanges turn negative, potentially signaling bearish short-term market sentiment.

The Grayscale Bitcoin Trust GBTC, the largest Bitcoin ETF by assets under management, saw outflows of $25 million.

However, these were offset by inflows into other products, with Fidelity‘s FBTC ETF attracting $16.2 million and Grayscale‘s mini Bitcoin ETF seeing inflows of $13.6 million, according to data from SoSo Value.

On the Ethereum front, spot ETFs faced more significant headwinds, with a total net outflow of $39.2 million.

The Grayscale Ethereum Trust ETHE bore the brunt of the selling pressure, experiencing outflows of $42.5 million, data shows.

Fidelity‘s FETH ETF provided a small bright spot with inflows of $2.5 million.

Also Read: Bitcoin Could Be At $20,000 In This Market, ETFs Are ‘A Godsend,’ Analyst Says

Why It Matters: These flows come against a backdrop of increasingly negative funding rates in the Bitcoin futures market.

According to data from CryptoQuant, funding rates on Binance, the largest cryptocurrency exchange by trading volume, have reached their most negative levels year-to-date.

This marks the third consecutive day of negative rates, a phenomenon not seen since October 2023.

“The average Bitcoin funding rate indicator across all exchanges is now negative, suggesting short positions are dominating the perpetual market,” noted a CryptoQuant analyst. “Given Binance’s significant share of open interest, this could indicate a bearish market sentiment for the short term.”

These topics and more are likely to be key points of discussion at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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