The once-sizzling demand for Bitcoin ETFs has hit a speed bump as the cryptocurrency stalls below the critical $105,000 resistance level. New data shows Bitcoin ETF inflows plummeted 77% this week, dropping from $378 million on June 3 to just $86.92 million on June 5, the clearest signal yet that institutional players are growing cautious amid the market’s sideways grind.
Spot Bitcoin ETFs, hailed as Wall Street’s gateway to crypto, saw net Bitcoin ETF inflows of $86.92 million on Wednesday, according to SosoValue data. While this maintains a 19-day streak of positive flows, the dramatic slowdown from earlier this week’s $378 million surge reveals growing hesitancy.
“The $105,000 level has become a psychological barrier,” said Markets analyst Rachel Wu. “Until Bitcoin decisively breaks through, we’re seeing Bitcoin ETF inflows mirror the spot market’s wait-and-see approach.”
BlackRock’s IBIT bucked the trend with $283.96 million in fresh investments, but Fidelity’s FBTC bled $197.04 million – the largest single-day outflow since May. The divergence suggests investors are becoming selective, favoring established funds during periods of uncertainty.
Price stagnation triggers a futures pullback
Trading at $104,913 (-1% daily), Bitcoin has hovered within a 2% range below $105,000 for six straight days. The standstill has drained momentum from derivatives markets:
Futures open interest dipped 1% to $70.09 billion (Coinglass)
Daily trading volumes fell 18% across major exchanges
Funding rates normalized after May’s speculative frenzy
“This isn’t capitulation – it’s consolidation,” noted Deribit’s head of options trading. “Traders are conserving capital until the next directional move.”
BTC Futures Open Interest. Source: Coinglass
Options market bets on impending volatility
While Bitcoin ETF inflows taper, the options market tells a different story. Deribit data reveals growing demand for call options (rights to buy at fixed prices), particularly at the $110,000 and $120,000 strike levels. Key developments:
Open interest for July $110,000 calls up 37% this week
Put/call ratio drops to 0.68 (bullish bias)
Implied volatility creeping higher ahead of Fed meeting
“The smart money is positioning for a potential breakout,” said crypto hedge fund manager Mark Tan. “If Bitcoin ETF inflows rebound alongside a price surge, we could see domino effect buying.”
The road ahead: catalysts needed
Analysts identify three potential triggers that could revive Bitcoin ETF inflows:
Macro shifts: Next week’s CPI data and Fed commentary
Technical breakout: Daily close above $105,500
Institutional developments: New ETF approvals or corporate treasury moves
“The current lull in Bitcoin ETF inflows resembles the pause we saw at $70,000 before April’s rally,” observed K33 Research’s Vetle Lunde. “Patient investors may get rewarded.”
As the market holds its breath, all eyes remain on the $105,000 threshold – the line separating cautious consolidation from potential price discovery. One thing’s certain: when Bitcoin ETF inflows reaccelerate, the entire crypto market will feel the ripple.
Sunderland-born crypto enthusiast, cycling fanatic, and wordsmith. As co-founder and lead editor of The Bit Gazette, Mark combines his passion for blockchain with a knack for breaking down complex stories into engaging content. When he's not tracking the latest crypto trends, you'll find him on two wheels—exploring backroads or clocking miles on his favorite cycling routes. Dedicated to delivering sharp, insightful journalism in the fast-moving world of digital assets.
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