09 Apr 2024

Renewed optimism despite negative ETF flows

Optimism rose among derivatives traders as bitcoin broke back through $70,000. Is the market setting up for another leg down, or will we finally break through the ATH convincingly?
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Bitcoin rallied on Monday despite negative ETF flows

Bitcoin climbed steadily throughout last week, accompanied by shallow positive net inflows to global BTC ETPs. Somewhat uncharacteristically, crypto prices rallied yesterday despite BTC ETFs experiencing the first significant net outflows in the last 10 trading days. This shows that while ETP flows are highly important for price discovery, they are not everything.

CME premiums spiked after yesterday’s rally

Premiums on CME futures fell throughout last week despite BTC’s steady rise from last Tuesday’s $65,000. However, yesterday’s rally injected renewed optimism into CME traders. The annualized BTC premium rose from a three-month low of 9% on Friday to 13.5% on Monday. Funding rates for Ethereum futures continue to trail bitcoin futures as traders, speaking with their money, expect the previous months’ underperformance to continue.

Active market participants on CME continue to unwind positions

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