Bitcoin spot ETFs experienced their first net outflow on Wednesday, ending an eight-day period of continuous inflows that had seen over $2 billion coming in. This reversal in funds flow, resulting in a $56.23 million exit from BTC spot ETFs, indicates a potential slowdown in institutional interest after a period of accumulation.

The halt in inflows may be linked to Bitcoin's price consolidation since April 25, as the cryptocurrency has been trading in a narrow range between $93,749 and $95,427. With the market consolidating and struggling to break key levels, some investors are choosing to reduce risk by withdrawing capital from BTC-backed funds temporarily.

While BlackRock's iShares Bitcoin Trust (IBIT) saw a net inflow of $267.02 million, reaching a total historical net inflow of $42.65 billion, Fidelity's FBTC experienced a $137.49 million outflow in a single day, putting its total historical net inflow at $11.63 billion.

In the derivatives market, BTC futures open interest has slightly decreased, indicating reduced activity and a level of uncertainty among traders. Despite this, the funding rate remains positive, suggesting a preference for long positions, and the options market shows a higher volume of call contracts compared to puts, indicating continued optimism for a potential upward breakout. While ETF inflows may have slowed down due to profit-taking, futures and options market data reveal that investors are not yet adopting a bearish outlook.