On Tuesday, Bitcoin exchange-traded funds (ETFs) received inflows totaling approximately $117 million, with Fidelity's Bitcoin Fund capturing $63 million in net inflows. This brought the fund's eight-month total to $9.5 billion.
Meanwhile, Grayscale’s Bitcoin Mini Trust and ARK Invest/21Shares’ Bitcoin ETF also saw substantial inflows, attracting $41.1 million and $12.7 million, respectively.
These developments followed a record inflow of $28.6 million on Monday, breaking an eight-day streak of outflows that saw $1.2 billion leave the market. This signifies the first time in September that spot Bitcoin ETFs crossed the $100 million mark in inflows.
BlackRock’s Bitcoin ETF, however, mirrored no such positive trend. Over the past 10 trading days starting August 27, it experienced no inflows and even recorded its second-ever outflow since its inception, losing about $13.5 million.
Despite these setbacks, BlackRock's Bitcoin ETF remains the market leader, with holdings exceeding $20 billion and 20% of shares held by 661 institutional holders. There are now over 1,000 institutional investors across all ETFs, showing a growing interest in these funds.
The recent inflows into Bitcoin ETFs coincide with a 6.71% rise in Bitcoin's price, hovering around $56,600. This increase is tied to broader economic indicators suggesting a rise in liquidity.
Julien Bittel, a macro researcher, noted that rising liquidity conditions could lead to explosive moves for Bitcoin, emphasizing the potential for a strong push higher in Q4.
The Global Money Index, which measures money volume among consumers and banks, is rising, indicating more available funds which could inevitably lead to increased Bitcoin purchases.
