Key Highlights:
- Bitcoin ETFs see third consecutive day of inflows
- Modest gains of $11.8 million on Wednesday
- Funds still deeply in the red for the week
- Bitcoin price remains uncertain, stuck in a sideways trend
- Market sentiment improves slightly, but optimism remains low.
In a promising sign for the cryptocurrency market, American bitcoin spot Exchange-Traded Funds (ETFs) have recorded their third consecutive day of inflows, indicating a potential turnaround in investor sentiment. According to data from Farside Investors, the funds collectively gained $11.8 million on Wednesday, marking the second-lowest net inflow since their launch on January 11.
While the inflows are modest, they represent a significant improvement over the persistent outflows that plagued the funds in recent weeks. The trend reversal began on Tuesday, with an inflow of $31 million, followed by a continued positive trend on Wednesday with $21.4 million flowing into the funds.
However, the current week is still deeply in the red, with the ETFs losing $174.5 million on Monday. To end the week on a positive note, funds would need to see more than $110 million in inflows today.
Grayscale’s GBTC fund was the only exception, with a net outflow of $11.4 million on Wednesday. Other funds, including Fidelity, Bitwise, ARK Invest & 21Shares, Invesco & Galaxy, and Franklin Templeton, saw positive results, with Bitwise leading the way with an inflow of $8 million.
The bitcoin price remains uncertain, stuck in a sideways trend between $60,600 and $42,400. While the current inflows into Bitcoin ETFs may indicate a slight improvement in market sentiment, the price remains fragile, hovering just above the crucial support level of $60,000.