US Spot bitcoin ETFs Experience Surge in Inflows
On Friday, US spot bitcoin exchange-traded funds (ETFs) witnessed a significant increase in inflows, with net purchases totaling $263 million. This surge marks the largest single-day inflow since July 22, driven by renewed interest as bitcoin surpassed $60,000, showing a 12% increase over the past week.
Leading the charge was Fidelity's bitcoin ETF (FBTC), attracting around $102 million in fresh capital and accumulating total weekly inflows of $218 million. This strong recovery follows two weeks of negative performance, during which $467 million flowed out of the fund.
ARK Invest and 21Shares Note Major Inflows
ARK Invest and 21Shares' bitcoin ETF (ARKB) closely followed suit, ending the day with approximately $99 million in net inflows. Other bitcoin ETFs managed by companies like Bitwise, Franklin Templeton, Valkyrie, VanEck, and Grayscale also reported positive inflows, reflecting a broader trend of increased interest in the US spot bitcoin ETF market.
However, not all funds experienced the same level of success. BlackRock's iShares bitcoin Trust (IBIT) and WisdomTree's bitcoin Fund (BTCW) reported zero inflows on Friday. IBIT has particularly struggled in recent weeks, witnessing no inflows for multiple trading days and even accruing net outflows on August 29 and September 9.
Despite varying performances among different funds, US spot bitcoin ETFs concluded the week with over $400 million in net inflows, demonstrating the prevailing bullish sentiment in the crypto market. The surge in bitcoin's price, coupled with robust ETF inflows, indicates a growing sense of optimism among investors.
crypto Market Sees Positive Movement
Beyond the US, the broader cryptocurrency market also saw gains. bitcoin's price rose from $54,300 at the beginning of the week to over $60,600 by Friday. Other major cryptocurrencies, like ethereum (ETH), experienced an 8% weekly increase, reaching $2,400.
Additionally, altcoins such as Toncoin (ton), Chainlink (LINK), and Avalanche (AVAX) were among the top performers, according to CoinGecko data. Despite the recent rally, a report from ARK Invest highlighted that the average cost basis of bitcoin ETF investors remains above the current market price.
This suggests that many early investors are currently holding positions at a loss. However, the report also underscored bitcoin's strong long-term fundamentals, with the MVRV Z-Score signaling bullish underlying value for the cryptocurrency.
Market Speculation and Potential Monetary Easing
Market speculation indicates that the recent surge in bitcoin and other cryptocurrencies may be fueled by expectations of a potential interest rate cut by the US Federal Reserve. With inflation data below expectations at 2.5%, investors anticipate a 25-50 basis points rate reduction during the Fed's upcoming meeting on September 18.
The possibility of monetary easing, combined with similar actions by the European Central Bank and the Bank of Canada, could sustain optimism in the crypto market. As the landscape continues to evolve, investors are closely watching for further developments that may impact the trajectory of digital assets.
