ETFs Surge to $1.19B Inflows Amid Market Recovery and Rate Cut Hopes, Bitcoin Gains Traction
Trend
This week’s ETF flow reached $1.19B, a notable increase from last week’s $371.00M and two weeks ago’s $391.00M. This marks a significant recovery following three weeks of negative flows, including a sharp decline of -$797.20M three weeks ago. The current week indicates a strong rebound, suggesting that investor sentiment is shifting positively after a period of uncertainty. The broader market context includes macroeconomic factors, particularly expectations around interest rate cuts by the Federal Reserve, which have instilled renewed confidence among investors. The recent inflows reflect a stabilization in the market, as investors appear to be positioning themselves for potential gains amid shifting economic indicators.
Day with the Highest Inflow
On Friday, the ETF market experienced its highest inflow, totaling $553.10M. Key contributors included ARKB with $203.10M, FBTC with $123.60M, and IBIT with $110.80M. Other notable inflows came from GBTC at $26.20M and BITB at $12.90M. Despite some ETFs like EZBC and BTCW seeing no inflows, the overall positive movement indicates a strong appetite for Bitcoin and Ethereum ETFs. Ethereum ETFs also saw inflows, with FETH leading at $42.50M, followed by ETHA at $11.50M and ETHW at $5.40M. The inflows on this day reflect a bullish sentiment in the market, as investors capitalize on the potential of these digital assets amidst a recovering market landscape.
Bitcoin Market Movements
Despite a significant reversal in the digital asset market last week, Bitcoin (CRYPTO: BTC) is trading down to $58,700. This decline follows a period of outflows totaling $1.2 billion, but a recent shift in sentiment has led to $436 million in inflows, marking the end of a 10-day streak of outflows, according to Coinshares. The renewed confidence is attributed to changing market expectations regarding a potential 50 basis point interest rate cut by the Federal Reserve on September 18, as indicated by former NY Federal Reserve President Bill Dudley. However, Bitcoin remains down 2% on Monday as the market adjusts to these anticipated changes. For more details, visit Benzinga.
Bitcoin ETFs Gain Traction
Investment in Bitcoin ETFs in the U.S. has surged following a losing streak, as confidence grows among investors anticipating rate cuts. This trend indicates a renewed focus on Bitcoin as a preferred investment vehicle. Further insights can be found at Decrypt.
BlackRock's ETF Performance
BlackRock’s iShares Bitcoin Trust (IBIT) has seen a turnaround, breaking a 13-day streak of flat or negative flows by taking in $15.8 million on Monday, as reported by Farside Investors. This marks a positive shift for the fund, highlighting renewed investor interest. More information is available at CoinDesk.
Clarifications on Coinbase Rumors
Recent rumors suggesting that Coinbase (COIN) issued bitcoin IOUs to BlackRock have been dismissed by industry experts, including Coinbase CEO Brian Armstrong. This clarification aims to quell concerns over the integrity of Bitcoin transactions and the company's operations. For further details, see CoinDesk.
Outlook for Solana and Meme Coin ETFs
Matt Hougan of Bitwise remains optimistic about the future of Solana and meme coin ETFs, despite the current challenges and rejections from the SEC. His insights reflect a broader confidence in the evolving ETF landscape. For more, visit BeInCrypto.
