The Bitcoin bulls have returned, assuming the ETF flows are credible. On Monday, U.S. bitcoin exchange-traded funds attracted $999 million in new investments, as reported by data. That represents the highest inflow in a single day since October 6, when the funds accumulated over $1.2 billion and the price of the leading cryptocurrency reached a new all-time high of $126,080. Bitcoin’s price recently stood at $86,552 after reaching a high of $87,330 on Monday. Over the past week, the coin’s price has increased by almost 13%.
Bitcoin ETFs in the U.S., approved by the SEC in 2024, have facilitated investor access to exposure that was previously unattainable. Currently, financial institutions on Wall Street have the capability to swiftly acquire shares of funds overseen by prominent managers such as BlackRock, Fidelity, Morgan Stanley, and others. When substantial investments flow into the funds, the price frequently experiences notable fluctuations – as observed on Monday. ETF analyst James Seyffart on Monday indicated that the average ETF buyer is now in profit, as the estimated ETF cost basis has exceeded $81.72 for the first time since January.
The ETF that attracted the largest share of Monday’s investment, totalling $381.4 million, was BlackRock’s iShares Bitcoin trust. The ARK 21Shares Bitcoin ETF garnered $289.1 million, while Fidelity’s Wise Origin Bitcoin Fund attracted $238.8 million. Investors are showing increased interest in Bitcoin following the cooling of the artificial intelligence stock rally, alongside the announcement from the U.S. Department of the Treasury in August regarding plans to at least double the scale of its liquidity-support buyback operations.
Analysts indicated that the action resulted in a decline in 30-year Treasury yields, a depreciation of the dollar, and enhanced the appeal of assets such as bitcoin. Following the announcement, the bitcoin price experienced its most significant surge in years. A Tuesday report indicated that the leading cryptocurrency has surpassed its 365-day moving average, suggesting that the asset has exited the bear market phase.
