US Bitcoin Spot ETFs See $92 Million Inflows Amid Market Slowdown
Date: 2024-09-23 Author: Henry Casey Categories: CRYPTO PAYMENTS
US Bitcoin spot ETFs were a big draw on Friday, seeing net inflows of $92 million despite the market downturn.
The funds saw nearly $400 million in total inflows for the week, according to SoSoValue.
Friday’s inflows were split among seven Bitcoin ETFs, led by Fidelity’s FBTC, which attracted $26.12 million.
Other Fund Inflows
ARKB, a joint fund between Ark Invest and 21Shares, also saw strong results with $21.99 million in inflows.
Bitwise’s BITB fund saw $15.08 million in inflows, while Grayscale’s Bitcoin Mini Trust saw $13.37 million.
Other Bitcoin ETFs, including VanEck, Valkyrie, and Invesco, also reported small but positive inflows.
Notably, no funds saw outflows on Friday, with five funds, including BlackRock’s IBIT, reporting zero activity.
U.S. Bitcoin ETFs saw $980.59 million in total daily trading volume on Friday, bringing their total net inflows since their launch in January to $17.69 billion.
The surge in investment comes amid a challenging period for the crypto market as a whole, reflecting continued confidence in Bitcoin’s long-term potential.
In related news, the U.S. Securities and Exchange Commission (SEC) has approved the listing and trading of options on BlackRock’s IBIT ETF, which will soon begin trading on the Nasdaq.
Meanwhile, U.S. spot Ether ETFs posted a second straight day of positive inflows, totaling $2.87 million, led by Grayscale’s Ethereum Mini Trust.
However, these funds are struggling overall.
Since their launch in July, Ether ETFs have seen a total net outflow of $615.58 million, highlighting the challenges of maintaining investor confidence in a volatile market.
As previously reported, digital asset investment products bucked the trend last week, recording $436 million in inflows after a sustained period of $1.2 billion in outflows.
The turnaround was driven by changing market expectations, including a potential 50 basis point cut in interest rates.
Bitcoin surges after Fed rate cut
Bitcoin prices surged above $63,000 last week as investors reacted to the Federal Reserve’s rate cut announcement.
The Fed’s FOMC decision to cut rates by 50 basis points is seen as a move to stimulate economic growth amid ongoing concerns.
“In the short term, a 50bp rate cut could signal to the market that the economy is slowing, pointing to potential problems that have not yet manifested themselves,” said 21Shares cryptocurrency analyst Matt Mena.
“This could unsettle both traditional and digital investors, causing initial volatility. However, in the long term, Bitcoin and other digital assets have traditionally thrived in a low interest rate environment.”
Mena added that such a move could signal a return of liquidity, which would spark interest in risk assets and trigger a sharp rise in Bitcoin as investors seek higher returns.
Aside from Bitcoin, other cryptocurrencies have also performed well.
