Bitcoin ETF recorded negative cash flow amid the recovery wave driven by short covering.

Bitcoin ETFs started the week in a calm atmosphere, having not recorded any net inflows in yesterday’s session. This development reflects the cautious sentiment of investors, in the context that confidence in the market is showing signs of weakness.

In the derivatives market, the number of Bitcoin ( put ) options contracts is continuing to increase, further reinforcing the view that investors are leaning towards a less optimistic scenario in the short term.

Money is flowing out of Bitcoin ETF funds, with no funds recording inflows

On Monday, the wave of capital withdrawal from spot Bitcoin ETF funds surged significantly, reaching a one-week high with a total value of up to 109.21 million USD. This move came right after the severe sell-off over the past weekend in the cryptocurrency market, resulting in over 1 billion USD being liquidated.

Net inflows into Bitcoin spot ETF | Source: SosoValueAccording to data from SosoValue, Grayscale’s ETF GBTC continues to lead in outflows, recording a negative cash flow of up to 74.01 million USD in just one day. Currently, the total net assets managed by GBTC (AUM) stand at 22.70 billion USD.

In second place is the BTCO fund co-managed by Invesco and Galaxy Digital, with daily withdrawals reaching $12.86 million. Since its inception, BTCO’s cumulative net cash flow stands at $85.32 million.

Notably, all 12 spot Bitcoin ETFs operating in the market did not record any inflows yesterday. This clearly reflects the cautious sentiment and a significant decrease in the level of interest from institutional investors at the beginning of the week.

The price increase due to the closing of BTC short positions faces downward pressure in the derivatives market

Bitcoin price (BTC) continue to hover below the $80,000 threshold, amid a marked decline in trading volume. This sign is reflected in the (OI) of Bitcoin futures, which is currently recorded at $50.95 billion — down 2 percent from the previous day.

! btc-eth-amBitcoin futures (OI) contracts | Source: CoinglassDespite this, during the same time period, the price of BTC increased by 3%, indicating an attempt to recover from the market. When open contracts fall during price increases, this usually indicates that the thrust is mainly coming from the closing of short (short covering) positions – rather than the actual influx of buying.

This development indicates that Futures traders are tending to reduce or close Short positions, thereby temporarily creating technical buying pressure that helps the price bounce back.

However, despite the decrease in prices and open contracts, the funding rate remains stable at a positive level, indicating that market sentiment still leans towards a bullish trend. Futures traders are still willing to pay fees to hold Long positions, showing that optimism regarding the short-term outlook for BTC has not yet faded.

Funding rate BTC. Source: CoinglassIn the derivatives market, the situation is not very optimistic. Investors continue to open more put options (, further reinforcing a pessimistic view on the price of this asset.

![])https://img.gateio.im/social/moments-b9246be4ebbabffd1630111733818219(Summary of BTC options | Source: DeribitThis reflects that Bitcoin traders are preparing for a bearish scenario and expect this coin to continue to adjust further.

You can view the BTC price here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

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