Even as crypto markets try to put on a brave face this week, institutional investors clearly are not buying it. Yesterday, Bitcoin spot ETFs recorded another round of outflows, marking the sixth straight day of capital flight from these funds.

Despite the broader market’s attempt at a short-term rebound, the continued withdrawals suggest that institutional sentiment remains cautious. The consistent outflows paint a picture of investors seeking safety or perhaps just sitting on the sidelines while volatility does its thing.

Bitcoin ETFs Continue Losing Streak

On Thursday, net outflows from BTC ETFs totaled $149.66 million, reflecting a 17% increase from the $127.12 million in outflows seen on Wednesday. 

This marked the sixth consecutive day of withdrawals from spot Bitcoin ETF funds, highlighting the growing caution and weakening sentiment among institutional BTC investors.

According to SosoValue, Grayscale Bitcoin Mini Trust ETF $BTC recorded the highest net inflow on that day, totaling $9.87 million, bringing the fund’s historical net inflow to $1.15 billion. 

On the other hand, Fidelity’s ETF FBTC witnessed the highest net outflow on Wednesday, totaling $74.67 million. As of this writing, its total historical net inflow is $11.40 billion. 

Derivatives Market Remain Optimistic

Meanwhile, BTC futures open interest has taken a modest hit, in line with the broader market dip. At press time, it stands at $51.73 billion, falling by 7% over the past day. This comes amid the decline in broader cryptocurrency market activity over the past 24 hours, during which BTC’s value has dipped by 2%.

A drop in open interest during a price decline suggests that traders are closing out positions rather than opening new ones. This indicates a possible bottoming phase or reduced volatility ahead.

But the story doesn’t end there.

Funding rates remain positive, and call options are in high demand, both considered bullish signals. 

At press time, BTC’s funding rate stands at 0.0015%. The funding rate is a recurring payment exchanged between long and short traders in perpetual futures markets to keep contract prices aligned with the spot market. A positive funding rate like this indicates that long traders pay short traders, signaling that bullish sentiment is dominant. 

In the options market, there is a high demand for calls over puts, further reflecting a bullish bias toward BTC.

The divergence between ETF flows and derivatives activity recorded this week suggests that while traditional institutions may be scaling back exposure, retail and leveraged traders continue to bet on rebounds.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he’s trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush’s journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he’s poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush’s unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

President Donald Trump signed the first-ever crypto-specific bill into law on April 10, 2025. The bill sought to repeal the IRS DeFi Broker Rule enacted under the Biden administration.

Previously, the resolution passed the Senate with a 70-28 vote and the House with a 292-132 margin. This reflected a widespread recognition of the need to protect innovation and privacy in the digital asset space.

Trump Signs Historic Crypto Bill, Ending IRS DeFi Broker Rule

The IRS DeFi Broker Rule mandated that decentralized finance (DeFi) platforms report transaction data to the Internal Revenue Service (IRS). It also suggested creating a new classification for brokers, including certain participants or entities involved in the DeFi sector.

Senator Ted Cruz and Representative Mike Carey introduced the Congressional Review Act of Disapproval (CRA), H.J. Res. 25, which ended this rule. In the latest press release, Representative Carey stressed that the bill marked the first cryptocurrency law passed and the first CRA related to taxes to be enacted. 

He argued that the rule now repealed, stifled growth and placed unnecessary burdens on the sector.

“The DeFi Broker Rule needlessly hindered American innovation, infringed on the privacy of everyday Americans, and was set to overwhelm the IRS with an overflow of new filings that it doesn’t have the infrastructure to handle during tax season. By repealing this misguided rule, President Trump and Congress have given the IRS an opportunity to return its focus to the duties and obligations it already owes to American taxpayers instead of creating a new series of bureaucratic hurdles,” he stated.

Industry leaders widely celebrated the move. Bo Hines, the Executive Director of the President’s Council of Advisers on Digital Assets, took to X (formerly Twitter) to underline the positive implications of Trump’s decision on the crypto sector. 

“Huge Moment! First crypto legislation ever signed into law. Repealing the IRS’s DeFi broker rule protects innovation and privacy—another big step toward ushering in a golden age for digital assets,” Hines posted.

SEC’s Shift in Strategy Paves the Way for Crypto Growth

Meanwhile, this legislative milestone coincides with a series of positive regulatory developments. On the same day, the SEC’s Division of Corporation Finance released new guidance on securities issuance and registration disclosures in the crypto asset market. 

“As part of an effort to provide greater clarity on the application of the federal securities laws to crypto assets, the Division of Corporation Finance is providing its views about the application of certain disclosure requirements under the federal securities laws to offerings and registrations of securities in the crypto asset markets,” the statement read.

The guidance addresses disclosure requirements related to price volatility, technological risks, and legal uncertainties. It also stresses transparency to ensure investors are fully informed about these offerings’ risks, characteristics, and details. This move signals a more structured approach to regulating crypto securities, potentially easing compliance for issuers while protecting investors.

In another significant development, the SEC dismissed unregistered securities charges against Nova Labs, the firm behind the Helium Network. This ruling removed the securities classification from Helium Hotspots and Helium’s tokens (HNT, MOBILE, and IOT) distributed through the network.

“With this chapter finally closed, Helium, DePIN, and crypto can now move forward with full confidence, accelerating real-world adoption and innovation in the industry. Together, we’ll fight for a future where everyone and everything can connect freely—without the barriers of inflated costs or gatekeepers standing in the way,” Helium remarked.

The dismissal reflected a shift in the SEC’s enforcement strategy under new leadership following Gary Gensler’s departure in January 2025. Since a new presidential term began, the SEC has dismissed several lawsuits and investigations into many crypto companies.

Notably, the regulator even dropped its long-standing lawsuit against Ripple last month. BeInCrypto reported that both parties reached a preliminary settlement agreement in their legal dispute. They filed a joint motion to suspend the appeal process.

These developments collectively signal a turning point for cryptocurrency regulation in the US, balancing innovation with investor protection as the industry continues to mature.