Yesterday, there was a surge in inflows into Bitcoin exchange-traded funds (ETFs) for the third consecutive day. With Bitcoin trading above $90,000, it indicates a growing interest from institutional investors who are re-entering the market after a period of caution.

The net inflows into US-based spot Bitcoin ETFs on Wednesday increased by 146%, reaching $936.43 million compared to the previous day's $381.40 million. This sudden surge marked the largest single-day inflow since January 17, highlighting a significant uptick in institutional demand for Bitcoin exposure.

The ETFs by Ark Invest and 21Shares, particularly ARKB, received the highest daily net inflow of $267.10 million, pushing its total net inflows to $2.87 billion. Following closely was Fidelity's FBTC with a net inflow of $253.82 million, bringing its historical total net inflows to $11.62 billion.

Despite the positive momentum in Bitcoin's price, derivatives traders are showing a more cautious approach, with indicators like the negative funding rate and a bearish put-to-call ratio suggesting a bearish sentiment. The negative funding rate implies increased short positions, with more traders anticipating a downward price movement in Bitcoin futures markets.

Although Bitcoin is currently trading above a crucial psychological point and seeing increased institutional inflows, the future trajectory will depend on how this momentum unfolds in the coming days.