- BTC ETFs see $1.21B in outflows as institutional investors react to stagnant prices.
- Futures market stays bullish with positive funding rate despite ETF pullback.
- Truth Social files for Bitcoin ETF; SEC review pending for 19b-4 and S-1 approvals.
Bitcoin exchange-traded funds have recorded three consecutive days of net outflows, with a total of $1.21 billion withdrawn from institutional products. The withdrawal marks the first billion-dollar exodus from BTC ETFs since mid-March, according to blockchain analytics platform Santiment.
Data from SosoValue shows that Tuesday alone saw $268 million exit the market. Analysts attribute the trend to Bitcoin’s limited price movement in recent weeks. The stagnation has prompted institutional participants to either pause further investment or redirect capital toward alternative assets.
This trend clearly shows growing caution in spot-based Bitcoin markets, particularly among the firms that manage large-scale ETF flows. While Bitcoin’s price itself hasn’t significantly declined during this period, the absence of strong upward momentum is viewed as a short-term deterrent for institutional strategies that often seek quicker returns.
Bitcoin Derivatives Market Stays Bullish Despite ETF Outflows
Interestingly, while these ETF outflows reflect some institutional uncertainty, Bitcoin’s derivatives market continues to display resilience. Futures contracts are currently marked by a positive funding rate of 0.0038%. This rate suggests that many traders are still entering long positions, an action that typically indicates expectations for future price appreciation, despite the pullback seen in ETF flows.
This divergence between spot ETF data and futures market activity points to a split in current investor sentiment. It appears that while some institutions might be scaling back their Bitcoin exposure in the short term, leveraged traders are still actively positioning for potential upside.
Truth Social Files for Its Own Bitcoin ETF
Amid this backdrop, Trump Media & Technology Group’s social media platform Truth Social is seeking to launch a Bitcoin ETF. A regulatory filing submitted Tuesday to the U.S. Securities and Exchange Commission by NYSE Arca proposes the creation of the Truth Social Bitcoin ETF.
The proposed fund is intended to track the price of Bitcoin. It is being advanced in partnership with Yorkville America Digital, a crypto asset manager affiliated with the initiative. The filing was submitted under the SEC’s 19b-4 process, a required step for introducing new financial products.
Related: BlackRock’s IBIT Bitcoin ETF Crushes All Competitors In Daily U.S. Fund Inflows
Regulatory Hurdles Ahead for Proposed Truth Social ETF
If the SEC approves it, this ETF would be listed on the New York Stock Exchange. Foris DAX Trust Company, which currently services other digital asset platforms, will be the custodian for the fund’s assets.
Related: Bitcoin Holds Near $110K as Profit-Taking and ETF Inflows Shape Outlook
However, Truth Social must also submit a separate S-1 registration statement. That document will include detailed information about the fund’s structure, strategy, and risk disclosures. The SEC must review and approve both the 19b-4 and S-1 forms before the ETF can proceed to trading.
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