Over the last four trading sessions, investors have poured $1.7 billion into Bitcoin ETFs, significantly improving market conditions after a recent slump.
Fund Flows into Bitcoin ETFs
Thursday was a record day as the market brought in more than half a billion dollars. Data from SoSoValue shows BlackRock's iShares Bitcoin Trust leading with $366.2 million, while Fidelity's fund added $134.7 million. Other issuers, including VanEck, Invesco, and Franklin Templeton, also reported gains.
Comparison with August
August was a tough month for Bitcoin ETFs, marking a $751 million capital loss, the third worst since ETFs launched in January. In contrast, Ethereum ETFs enjoyed their second-best month on record with nearly $3.9 billion in inflows, suggesting that investors were rotating out of BTC into ETH. Now, however, that trend appears to be reversing with a slight recovery in ether at the start of September.
Global Financial Conditions and Their Impact
Vincent Liu, CIO of Kronos Research, views this shift as tied to broader macroeconomic factors. With the Federal Reserve widely expected to cut rates next week, institutions are positioning ahead of looser monetary conditions. 'ETF flows are signaling confidence,' he noted, adding that stronger liquidity could put Bitcoin on track to challenge its all-time highs if macro conditions remain stable.
Thus, there is a considerable resurgence of interest in Bitcoin ETFs, which may indicate a positive trend in the market amid changes in monetary policy.
