Both Bitcoin and Ethereum ETFs (exchange-traded funds) experienced significant multi-week inflows for the period ending Friday, September 27, coinciding with ongoing discussions regarding the recovery of the crypto market.
Historically, September has been Bitcoin’s poorest-performing month, but with expectations for better performance as October approaches, market sentiment is cautiously optimistic.
Crypto ETFs Experience Multi-Week High Inflows
On Friday, crypto investors acquired 7,526 Bitcoin (BTC) and 22,310 Ethereum (ETH), resulting in impressive net inflows of $494.4 million and $58.7 million for Bitcoin and Ethereum ETFs, respectively.
According to Spotonchain, an on-chain analysis tool, the reported inflows have elevated total weekly flows to levels not seen in recent weeks. Bitcoin (BTC) ETFs alone saw total positive flows of $1.11 billion, marking the highest weekly inflow since July 19.
Conversely, Ethereum (ETH) ETFs recorded total inflows of up to $84.6 million from Monday to Friday, representing the highest weekly inflows since August 9.
Read more: How to Trade a Bitcoin ETF: A Comprehensive Guide
Farside Investors’ data supports these findings, indicating that BlackRock’s IBIT ETF consistently led inflows on most days, except for Monday when it recorded $11.5 million compared to Fidelity’s FBTC, which garnered $24.9 million in positive flows.
Since their launch in the US market in January 2024, spot Bitcoin ETFs have attracted institutional investors keen on directly including Bitcoin in their portfolios without the complexities of direct purchases and secure storage.
As noted by BeInCrypto, over 1,000 institutional investors have engaged during just two 13F filing periods, demonstrating a largely positive market response to BTC ETFs.
In contrast, the ETH ETF sector is facing challenges, with all issuers struggling to maintain strong performance. However, achieving positive inflows in both markets is proving to be a challenge.
Investor sentiment focuses on a potential recovery in the crypto market, with Bitcoin maintaining a strong position above $65,500.
The strength of Bitcoin’s price is closely linked to broader economic indicators suggesting an increase in liquidity. This situation often favors Bitcoin due to its sensitivity to shifts in liquidity. For example, China is contemplating fiscal assistance for its citizens amid economic challenges, while the US Federal Reserve has recently reduced interest rates, traditionally positive for risk-oriented assets.
Numerous economists, including macro researcher Julien Bittel, have noted the growth in liquidity.
“Liquidity is increasing once more, and Bitcoin—being highly responsive to changes in liquidity conditions—could potentially experience explosive moves as new liquidity enters the market. The macro environment is evolving, and a significant liquidity wave is approaching; Bitcoin appears set for a substantial boost in Q4,” Bittel commented.
Additionally, the Global Money Index (GMI) indicates a rise in liquidity, measuring the amount of money in circulation among consumers and banks.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
An increase in the GMI often suggests that more money is circulating and available for spending, which could lead to a rise in Bitcoin acquisitions.
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