Bitcoin ETFs See $28.7M Inflows Following Record Losses
Spot Bitcoin exchange-traded funds (ETFs) in the U.S. saw a positive turn with net inflows totaling over $28.7 million on Monday, marking an end to a significant outflow streak amounting to $1.2 billion.
The ETFs had been experiencing losses since August 27, and Monday marked the first day of net inflows in September. This shift comes amid warnings from traders about a potentially bearish month for the primary cryptocurrency. The outflows from the ETFs indicate a lack of fresh demand among professional investors.
The cumulative net inflows from inception have now dipped below the $17 billion level, reverting to levels last observed in July. Concurrently, Bitcoin prices have declined by nearly 15% over the past two weeks, currently standing 25% below the all-time high of $73,300 reached in March.
Despite the recent price movements, some traders remain optimistic about the market’s outlook. QCP Capital traders expressed their bullish sentiment in a Telegram broadcast on Tuesday, highlighting their long-term positive stance amidst the ongoing market volatility. They noted the market’s inclination to capitalize on the current downward trend to increase bullish positions.
The bounce observed from the $52,500 level has provided encouragement to some institutions, leading them to augment their bullish bets for the December and March periods. While the bottom of the market remains uncertain, there is a growing belief among some market participants that the recent price corrections present an opportunity to build on positive long-term positions.
In parallel, the CoinDesk 20 (CD20), a benchmark for the most prominent and liquid digital assets, has shown a 2.3% increase, currently trading at 1,800. Meanwhile, Bitcoin is trading above $56,500, slightly down from $57,000, ahead of the upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) releases, as well as the first debate between Donald Trump and Kamala Harris.
Traders on Polymarket anticipate that the debate may exceed its scheduled time, assigning only a 30% likelihood of concluding on time at 10:30 pm. Additionally, during the first half of Asia’s business day, several notable AI tokens have demonstrated positive performance, with the CoinGecko AI category showing a 10% increase.
Liquid staking tokens have also fared well, with Lido DAO’s (LDO) token rising by 6.3%. Similarly, Rocket Pool’s RPL token has surged by over 20% following Binance Futures’ announcement of leveraged perpetual contracts. Despite this, data from DeFi Llama indicates that RPL’s total value locked has not significantly increased and remains slightly above $2.9 billion.
The market continues to navigate through dynamic shifts, with traders closely monitoring developments and positioning themselves for potential opportunities in the evolving landscape.
