US Spot Bitcoin ETFs Add $263 Million, Biggest Daily Gain Since July 22
Date: 2024-09-16 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
US spot bitcoin ETFs saw a significant increase in inflows on Friday, with net purchases totaling $263 million.
This was the largest daily inflow since July 22, driven by increased interest as the price of bitcoin climbed above $60,000, up 12% from the previous week.
Fidelity’s Bitcoin ETF (FBTC) led the way, attracting nearly $102 million in new funds, bringing total inflows for the week to $218 million.
The recovery comes after two weeks of negative momentum, with $467 million being withdrawn from the fund.
ARK Invest and 21Shares See Large Inflows
ARK Invest and 21Shares’ Bitcoin ETF (ARKB) followed suit, ending the day with net inflows of nearly $99 million.
Other Bitcoin ETFs managed by firms like Bitwise, Franklin Templeton, Valkyrie, VanEck, and Grayscale also saw positive inflows, reflecting a general surge in interest in spot Bitcoin ETFs in the U.S.
Not all funds have seen the same success, however.
BlackRock Bitcoin Trust (IBIT) and WisdomTree (BTCW) saw no inflows on Friday.
IBIT was particularly challenged, with no inflows in recent weeks and even seeing net outflows on August 29 and September 9.
IBIT has only seen three days of net outflows since its inception, a rarity for a Bitcoin ETF.
Despite mixed results across funds, US spot Bitcoin ETFs ended the week with net inflows of over $400 million, indicating growing optimism among investors.
Bitcoin’s rally, along with strong ETF inflows, signals growing optimism in the cryptocurrency market.
Crypto Market Rally
Beyond the US, the broader cryptocurrency market also saw gains.
Bitcoin’s price rose from $54,300 at the start of the week to over $60,600 by Friday.
Other major cryptocurrencies followed suit, with Ethereum (ETH) posting an 8% weekly gain to reach $2,400.
Also, altcoins like Toncoin (TON), Chainlink (LINK), and Avalanche (AVAX) were among the top gainers, according to CoinGecko.
Despite the recent rally, a report from ARK Invest found that the average purchase price of a Bitcoin ETF is still higher than the current market price.
This suggests that many investors who bought in early are still holding on to positions at a loss.
However, ARK’s report also highlights that Bitcoin’s long-term fundamentals remain strong, with the MVRV Z-score, which compares Bitcoin’s market cap to its purchase price, pointing to a bullish outlook for the cryptocurrency.
The market is speculating that the recent rally in Bitcoin and other cryptocurrencies may be fueled by expectations of a potential interest rate cut by the US Federal Reserve.
With inflation data coming in lower than expected at 2.5%, many investors are expecting a 25-50 basis point rate cut at the Fed's next meeting on September 18.
The potential monetary easing, along with similar moves by the European Central Bank and the Bank of Canada, could continue to fuel optimism in the crypto market.
