US Spot Bitcoin ETFs See $263M in Inflows, Largest Single-Day Increase Since July 22

On Friday, U.S. spot Bitcoin exchange-traded funds (ETFs) saw a surge in inflows, with net purchases reaching $263 million.

This marks the largest single-day inflow since July 22, driven by renewed interest as Bitcoin climbed above $60,000, a 12% increase over the past week.

Leading the pack was Fidelity’s Bitcoin ETF (FBTC), which attracted around $102 million in fresh capital, bringing its total weekly inflows to $218 million.

The strong recovery followed two consecutive weeks of negative performance, during which $467 million flowed out of the fund.

ARK Invest and 21Shares See Major Inflows

ARK Invest and 21Shares’ Bitcoin ETF (ARKB) followed closely behind, ending the day with approximately $99 million in net inflows.

Other Bitcoin ETFs managed by companies such as Bitwise, Franklin Templeton, Valkyrie, VanEck, and Grayscale also recorded positive inflows, reflecting a broad trend of renewed interest in the U.S. spot Bitcoin ETF market.

However, not all funds saw the same level of success.

BlackRock’s iShares Bitcoin Trust (IBIT) and WisdomTree’s Bitcoin Fund (BTCW) reported zero inflows on Friday.

IBIT, in particular, has struggled in recent weeks, experiencing no inflows for several trading days and even seeing net outflows on two occasions, August 29 and September 9.

Since its inception, IBIT has recorded only three days of net outflows, a relatively rare occurrence among Bitcoin ETFs.

Despite the mixed performance across different funds, U.S. spot Bitcoin ETFs closed the week with over $400 million in net inflows, a testament to the overall bullish sentiment surrounding the crypto market.

The surge in Bitcoin’s price, coupled with strong ETF inflows, signals growing optimism among investors.

Crypto Market Rallies

Beyond the U.S., the broader cryptocurrency market also enjoyed gains.

Bitcoin itself saw its price rise from $54,300 at the start of the week to over $60,600 by Friday.

Other major cryptocurrencies followed suit, with Ethereum (ETH) posting an 8% weekly increase, reaching $2,400.

Additionally, altcoins such as Toncoin (TON), Chainlink (LINK), and Avalanche (AVAX) were among the top performers, according to data from CoinGecko.

Despite the recent rally, a report from ARK Invest said that the average cost basis of Bitcoin ETF investors still stands above the current market price.

This suggests that many investors who bought in earlier are currently holding positions at a loss.

However, ARK’s report also pointed out that Bitcoin’s long-term fundamentals remain strong, with the MVRV Z-Score—an indicator that compares Bitcoin’s market capitalization to its cost basis—signaling that the cryptocurrency’s underlying value is still bullish.

Market speculation suggests that the recent surge in Bitcoin and other cryptocurrencies may be fueled by expectations of a potential interest rate cut by the U.S. Federal Reserve.

With inflation data coming in below expectations at 2.5%, many investors anticipate a rate reduction of 25-50 basis points during the Fed’s next meeting on September 18.

The potential monetary easing, combined with similar moves by the European Central Bank and the Bank of Canada, could continue to drive optimism in the crypto market.