Institutional investors are expressing a strong bearish view based on the outflows of bitcoin ETFs over the past few months. A remarkable three-day inflow trend showed a significant change last week. Investors were anticipating further upside from the BTC ETFs, which provide long exposure. The decline in BTC short exposure is a clear indication of this.
ProShares Inflows and Outflows
ProShares Bitcoin ETFs rank highest in market popularity. While the BITO ETF provides long exposure, investors can also take advantage of short exposure with the BITI ETF. BITI’s BTC exposure grew rapidly after it was launched in a bearish market. The past week however has seen a decrease in investors’ willingness to wager against the bitcoin price.
Last Friday’s BITI outflows reached 1,060 BTC, which is the highest single-day outflow the ETF recorded since its inception. The outflows were not stopped at the end of the week. BITI also saw 425 BTC leaving. As of Monday, BITI had a total of 3,580 BTC.
BITO ETF reports inflows| Source: Arcane Research
The BITO has had all kinds of positive news over the past week. The ETF saw 1,650 BTC flowing into it in the last three days. After a month of inflows, this shows more interest for long-term exposure to the ETF.
BITI saw 1,050 BTC of outflows, while BITO recorded 700 BTC of inflows the day before. This suggests that investors are moving out of short positions to make way for long ones.
Bitcoin not Out of The Woods
While there has been significant inflows to long bitcoin ETFs over the past few months, these numbers do not show a change of sentiment from 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.
Source: BTCUSD on TradingView.com| 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. Even though outflows have occurred, the sentiment is strong to continue shorting this digital asset.
Although BITO recorded the strongest single-day flows back on Friday it has yet to reverse its bearish trend. However, the ETF still has a 3-month low despite its high inflows. The positive side of the ETF’s three-day inflows is a CME recovery.
CryptoPotato featured image, Charts by Arcane Research and TradingView.com
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