U.S. Spot Bitcoin ETFs Experience $263 Million in Inflows, Marking the Largest Daily Rise Since July 22

On Friday, U.S. spot Bitcoin exchange-traded funds (ETFs) experienced a notable increase in inflows, with net acquisitions totaling $263 million.

This represents the highest single-day inflow since July 22, spurred by renewed enthusiasm as Bitcoin surpassed $60,000, reflecting a 12% rise over the previous week.

At the forefront was Fidelity’s Bitcoin ETF (FBTC), which drew in approximately $102 million in new investments, raising its total weekly inflows to $218 million.

The robust rebound followed two successive weeks of negative performance, during which $467 million exited the fund.

ARK Invest and 21Shares Experience Significant Inflows

ARK Invest and 21Shares’ Bitcoin ETF (ARKB) closely trailed, concluding the day with around $99 million in net inflows.

Other Bitcoin ETFs managed by firms such as Bitwise, Franklin Templeton, Valkyrie, VanEck, and Grayscale also noted positive inflows, indicating a widespread trend of renewed interest in the U.S. spot Bitcoin ETF sector.

Nonetheless, not all funds achieved similar success.

BlackRock’s iShares Bitcoin Trust (IBIT) and WisdomTree’s Bitcoin Fund (BTCW) reported no inflows on Friday.

IBIT, in particular, has faced challenges in recent weeks, experiencing no inflows for several trading days and even recording net outflows on two occasions, August 29 and September 9.

Since its launch, IBIT has documented only three days of net outflows, a relatively uncommon situation among Bitcoin ETFs.

Despite the varied performance across different funds, U.S. spot Bitcoin ETFs concluded the week with over $400 million in net inflows, reflecting the overall optimistic sentiment surrounding the crypto market.

The rise in Bitcoin’s price, along with strong ETF inflows, indicates increasing optimism among investors.

Crypto Market Experiences Gains

Beyond the U.S., the wider cryptocurrency market also saw advancements.

Bitcoin’s price increased from $54,300 at the beginning of the week to over $60,600 by Friday.

Other significant cryptocurrencies followed suit, with Ethereum (ETH) achieving an 8% weekly rise, reaching $2,400.

Moreover, altcoins such as Toncoin (TON), Chainlink (LINK), and Avalanche (AVAX) were among the top performers, according to data from CoinGecko.

Despite the recent upswing, a report from ARK Invest indicated that the average cost basis of Bitcoin ETF investors still exceeds the current market price.

This implies that many investors who entered the market earlier are presently holding positions at a loss.

However, ARK’s report also highlighted that Bitcoin’s long-term fundamentals remain robust, with the MVRV Z-Score—an indicator that compares Bitcoin’s market capitalization to its cost basis—suggesting that the cryptocurrency’s intrinsic value is still bullish.

Market speculation indicates that the recent rise in Bitcoin and other cryptocurrencies may be driven by expectations of a potential interest rate reduction by the U.S. Federal Reserve.

With inflation data coming in lower than anticipated at 2.5%, many investors foresee a rate cut of 25-50 basis points during the Fed’s upcoming meeting on September 18.

The potential monetary easing, along with similar actions by the European Central Bank and the Bank of Canada, could further bolster optimism in the crypto market.

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