US Bitcoin ETFs Record $365 Million in One Day as Bitcoin Rises Above $65,000

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U.S. investors pumped about $365 million into the group of spot Bitcoin ETFs on Thursday, bringing total net purchases to more than $600 million so far this week, according to data from Farside Investors. The strong flows came as Bitcoin surged to $65,000, hitting a monthly high.

After losing on Wednesday, ARKB’s ARK Invest bounced back strongly yesterday, leading the pack with about $114 million in new capital.

BlackRock’s IBIT extended its winning streak, raking in around $93 million on Thursday, while Fidelity’s FBTC and Bitwise’s BITB together pulled in around $124 million.

Other gains were also seen in funds managed by VanEck, Invesco, Valkyrie and Franklin Templeton. WisdomTree’s BTCW was the only ETF with zero flows.

Grayscale’s Bitcoin Mini Trust captured nearly $3 million on Thursday. In contrast, its high-cost product, the GBTC fund, lost around $7 million, the smallest flow in two weeks.

The renewed interest in spot Bitcoin ETFs coincides with the recent rise in the price of Bitcoin.

Bitcoin breached the $65,000 level on Thursday after US GDP growth rose to 3% and weekly jobless claims unexpectedly fell.

Positive economic indicators, along with the Fed’s recent interest rate cut and potential stimulus measures in China, likely helped boost Bitcoin prices.

More rate cuts?

The Fed’s gauge of inflation, the personal consumption expenditures (PCE) index, is scheduled to be released at 8:30 a.m. ET on Friday.

Analysts expect core PCE to fall to 2.3% year-on-year in August, which would be the lowest level in four years. Core PCE is expected to grow by 2.7% annually.

Morningstar’s Preston Caldwell estimates headline PCE rose 0.15% and core PCE rose 2.4%. If his predictions are correct, he anticipates the Fed will cut interest rates by 25 basis points in November and December.

A potential rate cut could have a positive impact on Bitcoin’s price. Lower interest rates make riskier assets like Bitcoin more attractive to investors, potentially pushing prices higher.

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