Bitcoin ETF Inflows Erase $5.7 Billion Deficit, Leave Profit-Takers in the Way
US-listed Bitcoin exchange-traded funds (ETFs) have made significant gains in recent days, attracting more than $1.7 billion in fresh capital. This influx of cash has helped erase a $5.7 billion hole that had accumulated by July 13.
The latest inflows come after Treasury Secretary Scott Bessent signaled increased purchases of longer-dated government bonds in August, which some market participants interpreted as evidence of mounting pressure in long-duration debt markets.
Bloomberg Intelligence ETF analyst Eric Balchunas noted that the renewed demand for Bitcoin ETFs began gathering pace in August and has since continued to grow, with about $4.6 billion flowing into the products over the same period.
The average cost basis of Bitcoin held through the funds is estimated near $82,000, leaving investors who had been holding positions below their purchase price back in unrealized profit after Bitcoin rose above $85,000.