As the price of Bitcoin surpassed $65,000 for the first time in nearly two months, inflows into spot Bitcoin ETFs accelerated. This trend appears to coincide with lower interest rates around the world, reigniting institutional interest in Bitcoin ahead of a possible bull run in the fourth quarter.
Spot Bitcoin ETF inflows increased: On Thursday, September 26, the total inflow of Bitcoin spot ETFs reached $365 million, setting a record for the highest single-day inflow in September. In addition, the continuous inflow of ETF products for six consecutive days is also worth noting.
Institutional investment leaders: Ark Invest’s BTC ETF (ARKB) led with $113 million in inflows, followed by BlackRock’s IBIT ETF with $93.4 million in inflows. BlackRock has increased its Bitcoin holdings to 359,606 BTC, making it one of the largest investors.
Recently, inflows into spot Bitcoin ETFs have coincided with strong trading volumes. BlackRock’s IBIT ETF topped the list with $1.52 billion in volume, while the ProShares Bitcoin Strategy ETF (FBTC) followed closely behind with $355 million in volume.
Institutions prepare for Bitcoin's rise in Q4: In addition to Bitcoin ETFs, institutions are also preparing for a sharp rise in Bitcoin in the fourth quarter amid a global interest rate cut. Chinese investors are turning to Bitcoin due to fragile economic conditions. QCP Capital said: "We expect the People's Bank of China to further ease monetary policy, and they have also conveyed this message. As the Federal Reserve joins the global rate cut cycle, all major central banks, except the Bank of Japan, are ready to provide more liquidity to the market." Arthur Hayes believes that this influx of liquidity may trigger a volatility super cycle. Hayes believes that Bitcoin will appreciate in this environment and claims that BTC is the most technological way for the ruling elite to balance spending in the modern digital world.
Statements from institutions and analysts suggest that the growing popularity and institutional interest in spot Bitcoin ETFs could have a significant impact on the Bitcoin market in the near future.
The article is for reference only and does not constitute investment advice.
