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Investor interest in U.S. spot Bitcoin exchange-traded funds (ETFs) experienced a notable increase on Friday, with net inflows reaching $92 million despite a downturn in the market.
During the week, these funds saw nearly $400 million in total inflows, as reported by SoSoValue.
On Friday, the inflows were spread across seven bitcoin ETFs, with Fidelity’s FBTC at the forefront, drawing in $26.12 million.
Additional Funds Experience Inflows
The collaborative fund from Ark Invest and 21Shares, ARKB, closely followed with $21.99 million.
Bitwise’s BITB fund also noted considerable inflows, totaling $15.08 million, while Grayscale’s Bitcoin Mini Trust attracted $13.37 million.
Other bitcoin ETFs, such as those from VanEck, Valkyrie, and Invesco, reported smaller yet positive inflows.
Importantly, there were no net outflows recorded across all funds on Friday, and five funds, including BlackRock’s IBIT, reported no activity.
The total daily trading volume for U.S. bitcoin ETFs reached $980.59 million on Friday, with cumulative net inflows since their launch in January amounting to $17.69 billion.
This increase in investment occurs during a challenging phase for the broader crypto market, indicating sustained confidence in bitcoin’s long-term prospects.
In related developments, the U.S. Securities and Exchange Commission (SEC) has approved the listing and trading of options for BlackRock’s IBIT ETF, which are anticipated to begin trading on the Nasdaq shortly.
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Meanwhile, U.S. spot ether ETFs recorded a second consecutive day of positive inflows, totaling $2.87 million, primarily driven by Grayscale’s Ethereum Mini Trust.
However, these funds have faced difficulties overall.
Since their launch in July, Ether ETFs have experienced a total net outflow of $615.58 million, underscoring the challenges in sustaining investor confidence in this volatile market.
As previously reported, digital asset investment products saw a rebound last week, with inflows reaching $436 million following an extended period of outflows totaling $1.2 billion.
This turnaround was influenced by changing market expectations, particularly regarding the possibility of a 50-basis-point interest rate cut.
Bitcoin Rises Following Fed Rate Cut Decision
Last week, Bitcoin’s price surged past $63,000 as investors responded to the Federal Reserve’s announcement of a rate cut.
The Federal Open Market Committee’s decision to lower rates by 50 basis points is viewed as an effort to stimulate economic growth amid ongoing concerns.
“In the short term, a 50 bps rate cut could indicate to the market that the economy is slowing, suggesting underlying issues that may not yet be visible,” stated Matt Mena, Crypto Research Strategist at 21Shares, in a comment.
“This could unsettle both traditional and digital investors, potentially leading to initial volatility. However, historically, Bitcoin and other digital assets have prospered in low-interest-rate environments over the long term.”
Mena further noted that this action could signal a return of liquidity, fostering a risk-on sentiment and igniting a significant Bitcoin rally as investors seek higher yields.
In addition to Bitcoin, other cryptocurrencies also showed strong performance.
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