Spot Bitcoin ETFs May Offer Stability Amidst Unsustainable Funding Rates
The ongoing rally is challenging market expectations regarding the impact of spot Bitcoin ETF inflows, which were speculated to propel the leading asset to break all-time highs by the end of March. The rally is primarily driven by demand, evidenced by spot ETF volumes surpassing $3.2 billion and net inflows totaling $520 million.
The rapid price increase has triggered short liquidations and sparked a speculative buying frenzy, causing funding rates to soar on native exchanges and even longer-end futures trading up to more than 16% over the spot.
