Bitcoin ETFs Witness Historic Inflow Of $365 Million, Fuelling Bitcoin's Surge

By: Eliza Bennet

On September 26, Bitcoin ETFs experienced a significant influx of capital, amounting to $365.7 million, representing the most substantial single-day inflow since July 22. This influx arrives at a pivotal moment, with Bitcoin recently surpassing the $65,000 mark for the first time since August.

Leading the charge, Ark's ARKB ETF garnered $113.8 million, followed closely by BlackRock's IBIT ETF with $93.4 million, and Fidelity's FBTC ETF securing $74 million. Other noteworthy contributions included Bitwise's BITB ETF with $50.4 million and VanEck's HODL ETF contributing $22.1 million. Smaller inflows were observed for Invesco's BTCO and Franklin's EZBC, with $6.5 million and $5.7 million, respectively.

In contrast, Grayscale's GBTC continued to experience outflows, losing $7.7 million, although its smaller BTC ETF saw a modest gain of $2.9 million. Ethereum ETFs, on the other hand, recorded net outflows of $0.1 million, maintaining the trend of mixed investor sentiment within the Ethereum space. Notably, Grayscale's ETHE fund witnessed outflows of $36 million, while BlackRock's ETHA and Fidelity's FETH achieved smaller gains of $15.3 million and $15.9 million, respectively.

Bitcoin's recent performance demonstrates its increasing appeal as a strategic asset for institutional investors. The Federal Reserve's decision to lower interest rates by 50 basis points has further driven interest in Bitcoin. In the past week, U.S. spot Bitcoin ETFs experienced a cumulative inflow of around $497 million. The CEO of CryptoQuant emphasized that the growing demand for spot Bitcoin ETFs solidifies the U.S.'s dominance in Bitcoin holdings.

While BlackRock's ETF showed remarkable performance, other ETFs, like Ark 21Shares Bitcoin ETF and Fidelity's Wise Bitcoin Origin Fund, experienced withdrawals of $33.2 million and $47.4 million, respectively. Concerns arise as over 90% of Bitcoin holders are currently in profit, potentially leading to significant price adjustments if a large proportion decide to cash in gains. Furthermore, $5.8 billion worth of options contracts are nearing expiration, with traders closely monitoring the $66,000 resistance level.

Overall, recent inflows into Bitcoin ETFs indicate an evolving investment landscape, with institutional trust in Bitcoin growing stronger amidst economic stability signals from the Federal Reserve.