U.S. spot Bitcoin exchange-traded funds recorded $167 million in net inflows on Monday, reversing two consecutive sessions of outflows as Bitcoin moved back toward the $70,000 level and investor demand returned to the largest cryptocurrency. While Bitcoin-linked products saw renewed interest, altcoin funds tracking Ether, XRP, and Solana continued to experience withdrawals despite modest gains across the broader crypto market.
Amid these shifting capital flows in regulated crypto investment products, development activity within decentralized finance continues. Mutuum Finance, an Ethereum-based lending and borrowing protocol, has introduced “one-click” borrow presets within its testnet platform, a feature designed to simplify collateralized borrowing while the project advances its lending infrastructure ahead of a planned mainnet launch.
Altcoin ETFs extend outflows as Bitcoin funds recover
U.S. spot Bitcoin exchange-traded funds recorded $167 million in net inflows on Monday, ending a two-session streak of withdrawals as Bitcoin moved back toward the $70,000 level. The inflows followed roughly $577 million in combined outflows reported on Thursday and Friday, according to data from SoSoValue, signaling a renewed wave of investor demand for Bitcoin-linked investment products.
In contrast, ETFs tied to major altcoins continued to see capital exit the market. Funds tracking Ether, XRP, and Solana recorded net outflows of approximately $51 million, $18 million, and $2.5 million, respectively, extending a three-day withdrawal streak across these products. This occurred despite the underlying tokens posting gains of around 3% to 5% over the past 24 hours, based on CoinGecko data.
Market sentiment was partly influenced by easing geopolitical tensions after U.S. President Donald Trump said the conflict with Iran could be nearing an end. The comments helped reduce pressure in global markets and pushed oil prices lower, contributing to a broader rebound in risk assets, including cryptocurrencies.
Despite the short-term recovery, analysts caution that the market may not have reached a clear bottom. Data from CryptoQuant showed the Bitcoin long-term holder to short-term holder spent output profit ratio falling to 0.89, indicating that short-term holders are selling at a loss. According to analysts, this suggests that market stress is increasing, though conditions have not yet reached levels typically associated with full capitulation.
Mutuum Finance adds ‘One-Click’ borrow presets
Mutuum Finance has introduced “one-click” borrow presets within its V1 protocol currently operating on the Sepolia testnet, a feature designed to simplify the borrowing process for users interacting with its lending and borrowing platform. The new function allows borrowers to select predefined risk levels when opening a position, helping streamline collateralized borrowing while reducing the complexity typically associated with decentralized lending protocols.
The presets enable users to choose between Safe, Balanced, and Aggressive borrowing options. Each preset automatically adjusts borrowing levels relative to the maximum loan-to-value (LTV) ratio permitted by the protocol. The Safe option keeps borrowing well below the maximum threshold to provide a larger liquidation buffer, while the Balanced preset allows moderate capital utilization. The Aggressive option permits borrowing closer to the maximum LTV, offering higher liquidity access but with increased exposure to liquidation risk if collateral values decline.
Alongside ongoing product development, the project reports that it has raised over $20.7 million, with more than 19,000 holders participating in the ecosystem. The native MUTM token is currently priced at $0.04, and the protocol’s smart contract framework has undergone security reviews, including an audit of the token contract by CertiK and a separate audit of the lending and borrowing contracts conducted by Halborn.
How Mutuum Finance works
Mutuum Finance operates as a decentralized lending and borrowing protocol built on Ethereum, allowing users to supply crypto assets into liquidity pools to earn yield or deposit assets as collateral to borrow other tokens. The platform follows an overcollateralized model, meaning users must deposit assets with a higher value than the amount they intend to borrow.
When users supply assets such as ETH or USDT, the protocol mints mtTokens representing the user’s share of the liquidity pool. These tokens function as proof of deposit and accumulate yield over time based on borrowing demand and pool utilization. For example, if a user supplies $10,000 in USDT to the protocol and the average annual percentage yield (APY) is around 5%, the position could generate approximately $500 in passive income over one year.
Borrowers can use deposited assets as collateral to access liquidity without selling their holdings. For instance, if a user deposits $2,000 worth of ETH as collateral and the protocol allows a 75% LTV, the user may borrow up to $1,500 in other supported assets such as USDT. Once the borrowed amount and accrued interest are repaid, the user can withdraw the full collateral, maintaining exposure to potential price movements of the original asset while accessing temporary liquidity.
Overall, renewed inflows into U.S. spot Bitcoin ETFs highlight continued institutional interest in the largest cryptocurrency, even as altcoin funds face ongoing withdrawals. While market participants remain cautious about Bitcoin’s near-term direction, capital flows suggest that demand for regulated crypto investment products remains active.
At the same time, development across decentralized finance continues to progress. With new features such as one-click borrow presets, ongoing testnet activity, and growing participation from token holders, Mutuum Finance is expanding its lending infrastructure as it moves closer toward its planned mainnet launch.
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