BlackRock’s iShares Bitcoin Trust Leads US Spot Bitcoin ETF Inflows with $499M in a Record-Breaking Week

• This week has marked the highest inflows into United States spot Bitcoin exchange-traded funds (ETFs) since mid-July, surpassing $1.1 billion.
• The peak day was September 27th, when inflows reached an impressive $494.4 million, showcasing robust investor interest.
• “The combined performance of Bitcoin ETFs, notably BlackRock, ARK 21Shares, and Fidelity, underscores a significant market shift,” noted Farside Investors.

Witness a surge in Bitcoin ETFs as inflows surpass $1.1 billion, marking the largest positive movement since mid-July.

Record Setting Inflows for Bitcoin ETFs

The week witnessed unprecedented inflows into U.S. spot Bitcoin ETFs, culminating in a total of $1.1 billion. Notable players like BlackRock’s iShares Bitcoin Trust, ARK 21Shares Bitcoin ETF, and Fidelity® Wise Origin® Bitcoin Fund led this surge with inflows of $499 million, $289.5 million, and $206.1 million, respectively. September 27th stood out as a particularly successful day, recording $494.4 million, the best performance since June. 4.

Impact of Federal Reserve’s Interest Rate Cut

The significant rise in Bitcoin ETF inflows follows the Federal Reserve’s interest rate cut on September 18th, which has catalyzed market movements. Since the rate cut, Bitcoin prices have jumped by 13.8%, reaching $65,800 according to CoinGecko data. This bullish trend comes at a time when Bitcoin is just 10.8% shy of its all-time high of $73,738 recorded on March 14.

Broader Market Trends and Implications

In addition to the top performers, other Bitcoin products like those from Invesco & Galaxy, Franklin Templeton, Valkyrie, and VanEck also experienced positive inflows, ranging from $5.7 million to $33.3 million. Remarkably, WisdomTree’s Bitcoin Fund did not record any inflows during this period. The cumulative inflow since the inception of these ETFs has now reached a striking $18.8 billion.

Ethereum ETFs Also on the Rise

The trend isn’t limited to Bitcoin. U.S. spot Ether (ETH) ETFs also experienced a noteworthy week with $85 million in inflows, the highest since early August. Since their launch, these Ethereum products have amassed over $1.1 billion in inflows, even when factoring in the significant outflows from Grayscale Ethereum Trust.

Conclusion

This week’s developments highlight a sustained investor interest in cryptocurrency ETFs, fueled by broader economic maneuvers like the Federal Reserve’s interest rate cuts. As we approach the last quarter of the year, traditionally strong for Bitcoin, the market sentiment appears optimistic. Investors are advised to stay attuned to market shifts and regulatory updates that could further influence cryptocurrency valuations.