Bitcoin ETF Inflows Rebound with $4.9B Surge Since August 19

Bitcoin exchange-traded funds (ETFs) have seen a significant turnaround in recent weeks. According to Bloomberg's ETF analyst Eric Balchunas, these products have now secured roughly $320 million worth of inflows this year after experiencing a 'tsunami' of inflows.

The red-hot products attracted a whopping $4.9 billion worth of funds since August 19, the day when the U.S. Treasury announced buybacks of longer-dated bonds, which is considered to have kickstarted the current cryptocurrency market rally.

Bitcoin itself has surged by roughly 35% since then, recently topping the $87,000 level before slipping below the $85,000 level due to extreme selling pressure.

The Bitcoin ETFs experienced a brief recovery on September 14, but investor demand weakened sharply, resulting in four consecutive outflow sessions totaling roughly $463 million. However, that weakness has now been decisively reversed with nearly $2.31 billion arriving in four sessions from September 17 to 22.