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Bitcoin ETFs see $1.11B inflows amid market recovery

Bitcoin ETFs see $1.11B inflows amid market recovery

GrafaGrafa2024/09/30 04:30
By:Mahathir Bayena

Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) ETFs have recorded significant multi-week inflows, signaling renewed optimism in the crypto market.

In the week ending September 27, 2024, Bitcoin ETFs saw inflows of $1.11 billion, while Ethereum ETFs garnered $84.6 million, the highest since August.

The inflows follow a historically underwhelming September for Bitcoin, with market participants hoping for better performance as October approaches.

Data from on-chain insights tool revealed that 7,526 Bitcoin and 22,310 Ethereum tokens were purchased on Friday, driving inflows of $494.4 million and $58.7 million, respectively.

BlackRock’s IBIT ETF led daily inflows, with Fidelity’s FBTC also posting strong gains.

Since their introduction to the U.S. market in January 2024, spot Bitcoin ETFs have attracted considerable interest from institutional investors, bypassing the complexities of direct Bitcoin purchase and storage.

Meanwhile, Ethereum ETFs have struggled to match Bitcoin’s momentum, despite positive flows.

The continued underperformance of Ethereum ETFs contrasts with Bitcoin's recent resilience, as BTC maintains a price above $65,500.

Bitcoin's price strength is supported by broader macroeconomic indicators, including rising liquidity conditions.

China’s fiscal aid efforts and the U.S. Federal Reserve’s recent rate cuts are seen as positive catalysts for Bitcoin, which is sensitive to liquidity changes.

Macro researcher Julien Bittel commented that a “major liquidity wave” could trigger explosive growth for Bitcoin in Q4 2024.

The Global Money Index (GMI), which tracks money in circulation, also indicates increased liquidity, potentially leading to higher Bitcoin purchases.

At the time of writing, the Bitcoin price was $64,533.14.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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