Key points
- US Bitcoin ETFs saw the largest inflow since late July, with over $263 million in a single day.
- Bitcoin price surge coincides with massive ETF investments, peaking at over $60,000.
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Inflows into U.S. Bitcoin exchange-traded funds surged on Friday, with net purchases topping $263 million — the largest single-day inflow since July 22. The strong performance returned on a day when Bitcoin surpassed $60,000, posting a 12% gain in a week, according to TradingView.
According data According to Farside Investors, investors poured around $102 million into Fidelity Bitcoin (FBTC), bringing the fund’s weekly gains to approximately $218 million.
FBTC staged a strong recovery and led the pack this week after suffering two consecutive weeks of negative performance. During the period, around $467 million was lost from the fund.
ARK Invest/21Shares’ Bitcoin Fund (ARKB) followed in FBTC’s footsteps and closed Friday with around $99 million in net capital. Other competing Bitcoin ETFs run by Bitwise, Franklin Templeton, Valkyrie, VanEck and Grayscale also saw positive inflows.
Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT), WisdomTree’s Bitcoin Fund (BTCW), and Grayscale’s Bitcoin Mini Trust (BTC) saw no flows.
IBIT's recent performance has been lackluster, with no inflows seen on almost every trading day over the past two weeks.
The fund even experienced net outflows on two separate days during this period, August 29 and September 9. Since its launch, IBIT has recorded a total of three days of net outflows.
With massive gains on Friday, US spot Bitcoin ETFs closed the week with over $400 million in net inflows.
The positive sentiment extended beyond U.S. Bitcoin funds, as the broader cryptocurrency market also experienced a green day. Bitcoin (BTC) rose from $54,300 on Monday to $60,600 yesterday. The flagship cryptocurrency now settles around $60,200, according to TradingView. data.
Ethereum (ETH) rose 8% to $2,400 in a week. Among the top 20 cryptoassets, Toncoin (TON), Chainlink (LINK), and Avalanche (AVAX) recorded the biggest gains. data from CoinGecko shows.
Bitcoin ETF investors in the red: ARK Invest
A recent report According to ARK Invest data, the average basis cost of investors in US spot Bitcoin ETFs was above the current market price at the end of August. This indicates that most of these participants are currently in a disadvantageous situation.
The flow-weighted average price used to calculate the cost basis indicates that investors who bought earlier may have bought at higher prices, exacerbating the negative impact of the recent price decline.
However, according to the MVRV Z-score, an indicator that compares Bitcoin’s market cap to its cost basis, Bitcoin’s fundamentals remain bullish, ARK Invest notes. The overall sentiment towards Bitcoin remains positive.
All eyes are on the Fed's rate decision
The recent rise could be due to the expectation of an interest rate cut by the Federal Reserve (Fed). Market participants expect a possible rate reduction of between 25 and 50 basis points at the Fed meeting on Wednesday, September 18.
The adjustment is supported by the recent inflation report, which came in at 2.5%, below expectations and well on track toward the Fed's 2% target.
The global context also reflects a similar monetary easing: the European Central Bank and the Bank of Canada have recently reduced their rates.
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