Spot Bitcoin ETFs See $39M in Daily Net Inflows as BTC Maintains $58K Level

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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September 13, 2024

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U.S. spot Bitcoin exchange-traded funds (ETFs) saw daily net inflows of $39.02 million on Thursday, rebounding after experiencing negative flows the previous day.

According to data from SoSoValue, the bulk of these inflows came from Ark and 21Shares’ ARKB fund, which attracted $18.34 million.

Fidelity’s FBTC followed closely, recording $11.47 million in inflows, while Grayscale’s Bitcoin Mini Trust received $5.18 million.

More Funds See Inflows

Other notable contributors to the inflows include VanEck’s HODL, which saw $4.95 million, and Franklin Templeton’s Bitcoin fund, which garnered $3.38 million.

Bitwise’s BITB also registered positive movement, with $2.22 million in inflows.

Despite the overall positive trend, Grayscale’s GBTC stood out by recording outflows of $6.51 million, the only Bitcoin ETF to do so.

Meanwhile, BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, reported zero net inflows. Notably, IBIT has not seen any new inflows since August 27.

On the trading front, the 12 Bitcoin ETFs recorded a lower daily volume of $896.92 million, down from $1.27 billion the previous day.

Since their launch in January, these funds have accumulated $17.03 billion in total net inflows.

In contrast, U.S. spot Ethereum ETFs experienced net outflows of $20.14 million on Thursday, marking the second consecutive day of negative flows.

Grayscale’s ETHE was the sole contributor to the outflows, while the remaining eight Ethereum ETFs saw no movement.

Total daily trading volume for Ethereum ETFs fell to $106.14 million, down from Wednesday’s $126.22 million.

Overall, Ethereum ETFs have recorded cumulative net outflows of $582.74 million.

The inflows come as Bitcoin continues to hold steady around the $58,000 mark, despite a 0.6% drop to $57,916.

The cryptocurrency had dipped below $53,000 following weak U.S. non-farm payroll data last week but has since rebounded.

Investors now look ahead to the Federal Reserve’s upcoming Open Market Committee meeting for further market direction.

How Would Rate Cuts Impact Crypto Market?

A Federal Reserve rate cut, whether 25 or 50 basis points, is likely to impact the crypto market positively, according to Ryan Lee, Chief Analyst at Bitget Research.

In a statement, Lee said that a 25-basis point cut signals moderate economic concerns and could lead to a gradual rise in crypto prices as investors seek higher returns outside traditional markets.

The rebound is expected to be mild with limited volatility.

“Investors may gradually reallocate funds from low-yield traditional assets to riskier ones, leading to a moderate market upswing,” he wrote.

In contrast, a 50-basis point cut suggests deeper economic worries and could trigger significant capital inflows into cryptocurrencies, particularly Bitcoin, as investors turn to risk assets.

This would result in a stronger market rally but also heightened volatility.

“In the short term, as investor sentiment swings, the crypto market may experience sharp price volatility, especially during the initial phase as the market digests the positive news,” Lee claimed

In the long term, he said that either rate cut would reinforce expectations of continued Federal Reserve easing, supporting demand for cryptocurrencies.