This week, American Bitcoin ETFs attracted a record $1.1 billion in investments, reflecting increased confidence among institutional investors and the growing influence of Bitcoin-backed financial products in American portfolios.
Record week for American Bitcoin ETFs
From September 23 to 27, 2024, American Bitcoin ETFs attracted over $1.1 billion in investments, their best performance since mid-July. This figure includes a spectacular inflow of $494.4 million on September 27, a record day that hadn’t been matched since June 4, 2024. Key players driving this dynamic were BlackRock, with $499 million via its iShares Bitcoin Trust, ARK 21Shares with $289.5 million, and Fidelity with $206.1 million.
Reasons for success
These massive flows are partly explained by the Federal Reserve’s decision to lower interest rates on September 18, 2024, which boosted the crypto market. Bitcoin thus climbed 13.8% to reach $65,800, just 10.8% below its all-time high. This rebound, coupled with renewed interest from institutional investors, largely contributed to this influx of capital.
Perspectives and long-term implications
American Bitcoin ETFs have now accumulated $18.8 billion in inflows since their launch in January 2023. This figure represents a gradual but marked adoption of crypto-assets by institutional investors, as crypto-backed financial products gain legitimacy. Notably, Ether-based ETFs also had a record week, with $85 million in inflows, their best performance since August 2024. These results suggest promising prospects for the fourth quarter. Historically, Bitcoin has often achieved gains of over 50% during this period in five of the last nine years. If this trend continues, Bitcoin ETFs could continue to attract new capital and play a key role in democratizing crypto investment. However, this rise remains contingent on future decisions by regulators and central banks, who closely monitor financial market developments.
The performance of Bitcoin ETFs in the United States is a strong indicator of growing interest in crypto, particularly in the context of flexible monetary policies. As the fourth quarter approaches, past trends and current inflows suggest a potentially fruitful period for Bitcoin. However, uncertainties related to regulation and global macroeconomic conditions could still influence these dynamics.
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