Key Takeaways
- US Bitcoin ETFs recorded their highest inflow since late July, with a remarkable $263 million in one day.
- The surge in Bitcoin’s price aligns with substantial ETF investments, reaching above $60,000.
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Inflows into US spot Bitcoin exchange-traded funds skyrocketed on Friday, surpassing $263 million, marking the highest single-day inflow since July 22. This strong performance coincided with Bitcoin’s surge above $60,000, resulting in a 12% increase over the week, as per TradingView analysis.
Data from Farside Investors indicates that approximately $102 million was invested in Fidelity’s Bitcoin (FBTC), boosting the fund’s total weekly gains to around $218 million.
FBTC made a robust comeback, leading its group this week after facing two weeks of negative returns, during which it saw an outflow of nearly $467 million.
ARK Invest/21Shares’ Bitcoin Fund (ARKB) followed closely behind FBTC, ending the week with approximately $99 million in net assets. Competing Bitcoin ETFs, including those from Bitwise, Franklin Templeton, Valkyrie, VanEck, and Grayscale, also reported positive inflows.
Conversely, BlackRock’s iShares Bitcoin Trust (IBIT), WisdomTree’s Bitcoin Fund (BTCW), and Grayscale’s Bitcoin Mini Trust (BTC) recorded no inflows.
IBIT has had a lackluster performance recently, with nearly two weeks of no inflows.
Interestingly, this fund saw net outflows on two separate days during this timeframe: August 29 and September 9. Since its inception, IBIT has only registered three days with negative inflows.
Thanks to Friday’s impressive data, US spot Bitcoin ETFs concluded the week with over $400 million in net inflows.
The positive momentum extended beyond US Bitcoin funds, as the broader crypto market also enjoyed gains. Bitcoin (BTC) soared from $54,300 on Monday to $60,600 as of Thursday. The flagship cryptocurrency is currently hovering around $60,200, according to TradingView’s data.
Ethereum (ETH) rose 8% to $2,400 over the week. Among the top 20 cryptocurrencies, Toncoin (TON), Chainlink (LINK), and Avalanche (AVAX) experienced the most significant increases, based on CoinGecko’s data.
Bitcoin ETF investors facing losses: ARK Invest
A recent report from ARK Invest revealed that the average cost basis of US spot Bitcoin ETF investors was above the current market price as of late August. This trend suggests that many investors are currently at a loss.
The flow-weighted average price used to determine the cost basis indicates that those who bought in earlier likely invested at higher levels, worsening the adverse effects of the recent price decline.
However, the MVRV Z-Score, which assesses Bitcoin’s market capitalization against its cost basis, shows bullish fundamentals, according to ARK Invest. Overall sentiment around Bitcoin persists positively.
Attention on Fed’s interest rate decision
The recent uptick might be influenced by expectations of a potential interest rate cut from the Federal Reserve (Fed). Market participants are anticipating a possible reduction of 25-50 basis points at the Fed meeting scheduled for next Wednesday, September 18.
This move is supported by the latest inflation report, revealing a 2.5% figure, which is below forecasts and moving towards the Fed’s 2% objective.
Globally, a similar trend is observed, with the European Central Bank and the Bank of Canada recently lowering their interest rates.
