Bitcoin Holds Above $80K as Institutional Buying Remains Uncertain

Bitcoin has held above $80,000 over the weekend, but it's too early to conclude that institutional investors have returned. According to CryptoSlate, which reported on September 20, bitcoin futures positions and spot exchange-traded fund (ETF) flows are pointing in different directions.

The U.S. Commodity Futures Trading Commission (CFTC) tallied bitcoin futures positions as of September 15, showing that leveraged funds' net short position shrank by the equivalent of 7,275 bitcoin from the previous week. Meanwhile, asset managers' net long position fell by the equivalent of 4,733 bitcoin.

However, it's hard to conclude demand has recovered based on futures positions alone, as the CFTC classifies traders by their primary business activity, not by the purpose of individual positions. This means that the distinction between leveraged funds and asset managers does not imply all trades follow the same investment strategy.

Spot ETF flows also looked closer to a limited rebound, with net inflows of $159.5 million on September 17 and $433.0 million on September 18, for a combined $592.5 million over two days. However, total net inflows for the full week from September 14 to 18 came to just $6.1 million.