Spot Bitcoin ETFs surged to a new high of $17.7 billion in net inflows last week, reflecting investors' renewed confidence in the funds' underlying asset and the wider economy.
The 11 funds have generated $801.1 million in net inflows since Sept. 9, rebounding from a slump that stretched from late August into the first week of September.
"Big day for Bitcoin ETFs yest which have set new high water mark of +17.7b (most imp number) as flows across roll $1M turned positive," wrote Bloomberg Senior ETF Analyst Eric Balchunas in an X post on Friday.
The funds have generated $250 million in the two trading days since the Fed cut interest rates.
The robust inflows come amid signs that inflation has finally waned sustainably that the U.S. economy is slowing. Last week, the U.S. central bank noted as much, cutting interest rates by 50 basis points (bps) instead of by the milder 25 bps that it was considering. In the aftermath, investors sent risk-on assets higher with the S&P 500 setting its latest all-time record.
Bitcoin was recently trading at about $63,400 after jumping above $64,000 on Monday for the first time in a month. The largest cryptocurrency by market capitalization is up approximately 10% over the past 10 days with most of the rise occurring after the Federal Reserve announced its rate decision on Sept. 18.
Spot Bitcoin ETFs Rising
The Fidelity Wise Origin Bitcoin Trust (FBTC) led the latest ETF spike with $355.7 million in inflows. The ARK 21Shares Bitcoin ETF (ARKB) had the second most inflows at $185 million, followed by Bitwise Bitcoin ETF (BITB) with $134.3 million. Those funds have also traded higher in recent days with all three up about 0.5% on Monday. BlackRock's iShares Bitcoin Trust (IBIT), which has generated the most inflows in the funds' nearly 10-month history and has the most AUM, received just $15.8 million in inflows since Sept. 9.
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The Grayscaleâs Bitcoin Trust ETF (GBTC) was the only fund with net outflows over the period, $56.1 million. That fund has shed more than $20 billion in assets, although it differs from the other bitcoin funds because it is a trust and carries the highest expense ratio, 1.5%.
With bitcoin's latest price increases, the spot ETFs now manage more than $50 billion in assets.
