The US spot Bitcoin exchange-traded funds (ETFs) witnessed a two-month-high net inflows on Thursday, September 26. The inflows were led by ARK 21Shares’ ARKB, which recorded $113.8M of the total inflows.
The massive inflows were accelerated by Bitcoin’s price, which surpassed $65k yesterday for the first time in about two months and is currently trading at about $65,300, according to Tradingview.
Increased Interest In Spot Bitcoin ETFs
On Thursday, September 26, the daily total net inflow into the 12 US spot Bitcoin exchange-traded funds (ETFs) reached $365M, according to data from SoSoValue. This is the highest daily total net inflow for September, and such inflows have not been seen since July 22.
Also, yesterday marked the 6th consecutive day of sustained inflows into ETF products. The six-day upward momentum is noteworthy.
As Bitcoin (BTC) Price Rise
The massive inflows into the 12 spot Bitcoin ETFs yesterday were accelerated by the significant rise in the value of Bitcoin. It was reported that the price of Bitcoin rose from $62,600 to about $65,422 just within a few hours yesterday.
This trend also coincides with a global interest rate reduction, which led to a resurgence of institutional interest in BTC ahead of a potential Q4 bull run.
At press time, Bitcoin (BTC) had risen 2.7% over the past day and is trading at about $65,300, according to Tradingview.
Ark Invest Leads In Institutional Investments
Ark Invest 21Shares’ Bitcoin ETF (ARKB) led the inflows with an inflow of $113.82M, followed closely by BlackRock’s Bitcoin ETF (IBIT), the largest Bitcoin ETF, with $93.38M. BlackRock recently increased its BTC holdings to 359,606 BTC, making it one of the largest ETFs.
The recent US Spot Bitcoin ETFs inflows also coincided with strong trading volumes. For instance, BlackRock’s IBIT leads the list with a trading volume of $1.52B, while Fidelity’s FBTC follows with $361.51M.
Invesco’s BTCO, Franklin’s EZBC, Valkyrie’s BRRR, and Grayscale Bitcoin Mini Trust funds also joined the bullish movement with $6.5M, $5.7M, $4.6M, and $2.9M in inflows, respectively.
Only Grayscale’s GBTC recorded outflows on the day, with $7.73M exiting the fund. Its total outflows since launch day have now exceeded $20.1B.
Institutional Investors Preparing For The BTC Rally In The Fourth Quarter
Aside from the Bitcoin ETFs, institutional investors are preparing for a significant BTC rally in the fourth quarter amid global interest rate reductions. Institutional investors in China are turning to BTC due to their fragile economic conditions, as stated in the QCP Capital’s report.
In the report, QCP Capital highlighted a number of macroeconomic developments, such as the quantitative easing from the People’s Bank of China (PBoC) and the recent interest rate cut by the US Federal Reserve (Fed), that could pump liquidity into the economy.
According to Arthur Hayes in his essay ‘Volatility Supercycle,” this influx of liquidity into the economy could trigger a bullish movement for risk assets like Bitcoin.
