Bitcoin ETFs See $999M Inflows Amid Price Surge

Bitcoin ETF Demand Fuels Price Recovery

U.S. Bitcoin exchange-traded funds experienced a substantial influx of $999 million on Monday, according to data from Farside Investors. This marks the highest daily inflow since October 6, when ETFs took in over $1.2 billion and Bitcoin (BTC) reached its previous all-time high.

The price of Bitcoin currently trades around $86,552, briefly touching $87,330 on Monday. Over the past week, BTC has gained nearly 13%, indicating a shift in market sentiment.

The approval of Bitcoin ETFs by the SEC in 2024 has broadened access for investors previously unable to directly hold BTC. Major Wall Street firms, including BlackRock, Fidelity, and Morgan Stanley, now offer these funds, facilitating easier investment.

BlackRock, ARK, and Fidelity Lead Inflows

BlackRock’s iShares Bitcoin Trust led Monday’s inflows with $381.4 million. The ARK 21Shares Bitcoin ETF received $289.1 million, while Fidelity’s Wise Origin Bitcoin Fund saw $238.8 million in new investment.

Bloomberg ETF analyst James Seyffart noted that the average ETF buyer is now profitable, with the estimated ETF cost basis exceeding $81,72 for the first time since January. This suggests a positive feedback loop as more investors enter the market.

Recent investor interest is partly attributed to a cooling in the artificial intelligence stock rally and the U.S. Treasury’s decision in August to expand its liquidity-support buyback operations. This move lowered 30-year Treasury yields, weakened the dollar, and increased the appeal of assets like Bitcoin. CryptoQuant reports that BTC has now broken above its 365-day moving average, a potential indicator of a bear market conclusion.

Source: Bitcoin Magazine