Bitcoin Bets Hit Peak of $37B as ETF Inflows Set New Record

• Bitcoin traders have set a new record for BTC futures positions, with open interest surpassing $37.7 billion.

• The surge in open interest coincides with record inflows into spot bitcoin ETFs and a bullish long-short ratio, indicating positive market sentiment and expectations for bitcoin to reach new all-time highs in the coming weeks.

Bitcoin (BTC) traders have now placed the highest-ever positions on BTC-tracked futures in the asset’s history as open interest crept over $37.7 billion late on Thursday, setting a new record.

This eclipsed a previous peak of just under $37 billion in mid-March when bitcoin recorded fresh highs of $73,700.

The jump came as spot bitcoin exchange-traded funds (ETFs) set an inflow record over 18 days, The Block reported. BlackRock’s IBIT took on $340 million in net inflows on Thursday, preliminary data tracked by SoSovalue shows, while Ark Invest’s ARKB saw net outflows of nearly $97 million.

Over $5 billion in open interest has been added since Monday, Coinglass data shows, while BTC prices have risen from the $68,500 level to $71,000 in the period. Of the $37.7 billion, traditional finance powerhouse Chicago Mercantile Exchange (CME) holds the highest bets at $11 billion, followed by crypto exchange Binance at $8 billion.

The significant long-short ratio shows a bias toward bullish sentiment. Data shows the ratio rose over 1 early Friday from Thursday’s 0.94 level.

A ratio above 1 means that there are more long positions than short positions, suggesting positive market sentiment for an asset. On the other hand, a ratio below 1 suggests that short positions outnumber long positions, indicating negative expectations.

As such, several traders expect bitcoin to rise further in the coming weeks, citing growing risk appetite and favorable regulatory expectations.

“Bitcoin can overcome the resistance level in the zone of 71k-73k and renew all-time highs in the following weeks, driven by optimism in financial markets,” crypto exchange YouHodler’s chief of markets Ruslan Lienka told CoinDesk in a Friday email. “Such positive sentiment is caused by expectations of coming interest rate cuts in the US and Europe that stimulate capital inflow into risk assets.”

“Elevated trading activity with meme stocks such as GameStop and other penny stocks with low ratings shows a growing risk appetite,’ Lienka added.