US Bitcoin ETFs See Largest One-Day Flow Since Late July, Bitcoin Surpasses $60,000

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Inflows into U.S. spot Bitcoin exchange-traded funds surged on Friday, with net purchases exceeding $263 million, the largest single-day flow since July 22. The strong performance came on a day when Bitcoin soared above $60,000, up 12% in a week, on TradingView.

According to data from Farside Investors, investors poured about $102 million into Fidelity’s Bitcoin (FBTC), bringing the fund’s weekly earnings to about $218 million.

FBTC came back strong and led the pack this week after suffering two consecutive weeks of negative performance. During the period, approximately $467 million was drained from the fund.

ARK Invest/21Shares’ Bitcoin Fund (ARKB) trailed FBTC, ending Friday with a net worth of about $99 million. Other competing Bitcoin ETFs managed by Bitwise, Franklin Templeton, Valkyrie, VanEck and Grayscale also saw positive entries.

Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT), WisdomTree’s Bitcoin Fund (BTCW), and Grayscale’s Bitcoin Mini Trust (BTC) saw zero flows.

IBIT’s recent performance has been poor, with no flows seen on almost every trading day for the past two weeks.

The fund even saw net outflows on two separate days during this period, August 29 and September 9. Since launch, IBIT has seen a total of three days of net outflows.

With Friday’s massive gains, US spot Bitcoin ETFs ended the week with net inflows of more than $400 million.

The positive sentiment extended beyond US Bitcoin funds as the broader crypto market also saw a green day. Bitcoin (BTC) rose from $54,300 on Monday to $60,600 yesterday. The flagship crypto is now settling around $60,200, according to TradingView data.

Ethereum (ETH) rose 8% to $2,400 in one week. Among the top 20 crypto assets, Toncoin (TON), Chainlink (LINK) and Avalanche (AVAX) posted the most gains, data from CoinGecko shows.

Bitcoin ETF Investors in Red: ARK Invest

A recent report from ARK Invest shows that the average cost basis of US spot investors ETF Bitcoin has been above the current market price since the end of August. This indicates that most of these participants are currently underwater.

The flow-weighted average price used to calculate the cost basis indicates that investors who bought earlier may have bought at higher prices, exacerbating the negative impact of the recent price decline.

However, based on the MVRV Z-Score, an indicator that compares Bitcoin’s market cap to its cost base, Bitcoin’s fundamentals remain bullish, notes ARK Invest. The general sentiment towards Bitcoin is still positive.

All eyes on the Fed’s rate decision

The recent rise could be driven by anticipation of an interest rate cut by the Federal Reserve (Fed). Market participants expect a potential 25-50 basis point rate cut at the Fed meeting next Wednesday, September 18.

The adjustment is supported by the recent inflation report, which came in at 2.5%, below expectations and on track for the Fed’s 2% target.

The global context also reflects similar monetary easing, with the European Central Bank and the Bank of Canada cutting rates recently.

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