On Friday, U.S. spot Bitcoin exchange-traded funds (ETFs) experienced a massive inflow of $263 million, marking the largest single-day increase since July 22. 🚀 This surge in investment comes as Bitcoin climbed above $60,000, a 12% rise over the past week, sparking renewed interest among investors. 💰
Leading the inflow was Fidelity’s Bitcoin ETF (FBTC), which pulled in an impressive $102 million in fresh capital, bringing its total weekly inflows to $218 million. 📈 This recovery follows two straight weeks of losses, where $467 million left the fund. 🔻
💼 ARK Invest and 21Shares Also Attract Major Inflows
ARK Invest and 21Shares’ Bitcoin ETF (ARKB) also saw significant action, ending the day with $99 million in net inflows. 🏆
Other Bitcoin ETFs, including those managed by Bitwise, Franklin Templeton, Valkyrie, VanEck, and Grayscale, also recorded positive inflows, reflecting a broad resurgence of interest in U.S. spot Bitcoin ETFs. 📊
However, not all funds shared the same success. BlackRock’s iShares Bitcoin Trust (IBIT) and WisdomTree’s Bitcoin Fund (BTCW) saw zero inflows on Friday. 📉 IBIT, in particular, has faced challenges in recent weeks, with no inflows for several trading days and even reporting net outflows on two occasions, August 29 and September 9.
Despite this, IBIT has only recorded three days of net outflows since its inception, making such events relatively rare among Bitcoin ETFs.
📅 Overall Weekly Inflows Reach $400M
Despite the uneven performance across different funds, U.S. spot Bitcoin ETFs closed the week with over $400 million in net inflows, signaling strong bullish sentiment in the market. 🐂 The combination of Bitcoin’s price surge and the renewed interest in ETFs points to growing optimism among investors. 🌟
🌐 Crypto Market Rallies Beyond Bitcoin
The broader cryptocurrency market also enjoyed gains last week. Bitcoin rose from $54,300 at the beginning of the week to over $60,600 by Friday. 🔥
Other major cryptocurrencies joined the rally, with Ethereum (ETH) posting an 8% weekly increase, reaching $2,400. 📈 Additionally, altcoins like Toncoin (TON), Chainlink (LINK), and Avalanche (AVAX) were among the top performers, according to data from CoinGecko. 🌐
📉 Challenges Remain for Some Investors
Despite the rally, ARK Invest reported that the average cost basis for Bitcoin ETF investors remains above the current market price, meaning some early investors are still holding at a loss. 😬 However, ARK emphasized that Bitcoin’s long-term fundamentals remain strong, with the MVRV Z-Score (a metric comparing market cap to cost basis) signaling bullish long-term value. 🟢
📊 Market Optimism Driven by Potential Interest Rate Cut
The recent surge in Bitcoin and other cryptocurrencies may be fueled by expectations of an interest rate cut by the U.S. Federal Reserve. 🏦 With inflation data coming in below expectations at 2.5%, many investors are anticipating a rate reduction of 25-50 basis points at the Fed’s meeting on September 18. The potential easing of monetary policy, coupled with similar actions by the European Central Bank and the Bank of Canada, could keep the crypto market rally going strong. 🌍📈