US Bitcoin ETFs Raked in Over $1.1 Billion This Week
In a remarkable week for the cryptocurrency market, US Bitcoin ETFs raked in more than $1.1 billion in inflows, marking the largest week of inflows since mid-July. This surge highlights the growing interest and confidence in Bitcoin as an investment vehicle.
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Leading the Charge
The inflows were led by prominent financial institutions, with BlackRock’s iShares Bitcoin Trust, ARK 21Shares Bitcoin ETF, and the Fidelity® Wise Origin® Bitcoin Fund attracting $499 million, $289.5 million, and $206.1 million, respectively. These substantial inflows indicate a robust demand for Bitcoin products among institutional and retail investors alike.
Record-Breaking Day
The week included a standout day on September 27, with inflows totaling $494.4 million, the best-performing day since June 4, according to Farside Investors. This impressive figure followed a strong day on September 26, which saw inflows of $366 million. The momentum continued throughout the week, with other notable Bitcoin products from Invesco & Galaxy, Franklin Templeton, Valkyrie, and VanEck recording inflows between $5.7 million and $33.3 million.
Aggregate Inflows and Market Impact
The latest inflows bring the aggregate inflow since inception for all 11 spot ETFs combined to $18.8 billion. This significant increase comes on the heels of the Federal Reserve’s interest rate cut on September 18, which has contributed to a 13.8% rally in Bitcoin’s price, reaching $65,800 according to Coin Gecko data. The cryptocurrency is now only 10.8% off its all-time high price of $73,738, set on March 14.
Ethereum ETFs Also See Gains
Meanwhile, US spot Ether ETFs recorded $85 million in inflows this week, making it the biggest week since early August. Since their launch on July 23, Ethereum products have taken in a little more than $1.1 billion, factoring in the $2.9 billion in outflows from the Grayscale Ethereum Trust.
Consistent Positive Inflows
For the fourth consecutive day, these innovative financial instruments have recorded more than $390 million in positive net inflows, according to data from SoSoValue. On Tuesday, the collective inflows across the 12 US spot Bitcoin ETFs reached an impressive $135.95 million. BlackRock’s IBIT fund led the charge with a substantial $98.89 million, its most significant single-day inflow since August 26. Bitwise’s BITB and Fidelity’s FBTC followed closely, attracting $17.41 million and $16.80 million, respectively.
Bridging the Gap Between Traditional Finance and Crypto
The introduction of spot Bitcoin ETFs in January has revolutionized the cryptocurrency investment landscape. Since their launch, these funds have accumulated a staggering $17.83 billion in total net inflows. This remarkable figure underscores the pent-up demand for regulated Bitcoin investment vehicles and their potential to bridge the gap between traditional finance and the crypto market.
Market Outlook and Projections
As the ETF market continues to evolve, the broader crypto landscape is poised for potential growth. Digital asset research firm 10x Research has projected that Bitcoin (BTC) is on track to reach a new all-time high in the fourth quarter of this year. A price movement above the $65,000 level could signal the resumption of the bull market, with Bitcoin potentially targeting the $70,000 mark.
At the time of writing, Bitcoin is trading at $63,539, representing a 2.32% increase in the last week and a 13.41% decrease from its all-time high of $73,750, according to the Brave New Coin’s Bitcoin Liquid Index. However, the cryptocurrency has shown impressive gains over the past year, rising an astounding 144.43% since September 2023.
Conclusion
The recent surge in Bitcoin ETF inflows, coupled with optimistic price predictions, points to a shifting investment landscape where high-risk, high-reward assets are increasingly sought after. Stay tuned to Crypto Newz Alert for the latest updates and insights on the cryptocurrency market.
