Key Points
- US-based spot bitcoin ETFs recorded their highest daily inflows in nearly two months on September 14, 2024, totaling $263.1 million, despite the market leader BlackRock’s IBIT showing no significant activity.
- Bitcoin’s price is approaching the $60,000 mark, driven by trader expectations of a substantial interest rate cut from the Federal Reserve in the coming week.
On September 14, 2024, US-based spot bitcoin exchange-traded funds (ETFs) experienced their most significant single-day inflows since July 22, marking a notable shift in investor sentiment. The total net inflow reached $263.1 million, the highest in almost two months, contributing to a weekly inflow of $403.8 million. This surge comes after two consecutive weeks of net negative inflows, signaling a potential turnaround in the market.
Interestingly, this record-breaking day occurred without significant participation from the market leader, BlackRock’s IBIT. Over the past two weeks, IBIT has seen minimal activity, with only $9.1 million in outflows and most days showing no net trading.
Leading ETFs and Market Dynamics
The day’s impressive inflows were primarily driven by two funds:
- Fidelity’s FBTC: Led the pack with $102.1 million in inflows
- Ark & 21Shares’ ARKB: Followed closely with $99.3 million in inflows
Bitwise’s BITB also made a significant contribution, recording $43.1 million in inflows. Bitwise CEO Hunter Horsley expressed optimism about the future of Bitcoin and cryptocurrency in an X post, reflecting the positive sentiment surrounding these inflows.
Other funds that posted modest gains include:
- Grayscale’s GBTC: $6.7 million
- Franklin’s EZBC: $5.2 million
- VanEck’s HODL: $5.1 million
- Valkyrie’s BRRR: $1.7 million
The remaining funds in the market reported no significant inflows or outflows for the day.
Bitcoin Price Movement and Market Expectations
As these ETFs experience renewed interest, the price of Bitcoin is challenging the $60,000 mark. This upward movement is partly attributed to traders betting on a significant interest rate cut from the Federal Reserve, expected to be announced in the coming week. The anticipation of looser monetary policy typically bodes well for risk assets like cryptocurrencies.
Ethereum ETFs Show Signs of Recovery
In a related development, US-based spot Ethereum ETFs also logged modest inflows, marking a rare rebound for these relatively new investment vehicles. While the focus remains primarily on Bitcoin ETFs, this uptick in Ethereum ETF activity suggests a broader positive sentiment in the cryptocurrency investment space.
As the cryptocurrency market continues to evolve and mature, the performance of these ETFs serves as a barometer for institutional and retail interest in digital assets. The coming weeks will be crucial in determining whether this surge in inflows represents a sustained trend or a temporary fluctuation in an ever-dynamic market.
