Bitcoin ETF Inflows Surge to $3.5 Billion Amid Debasement Trade Revival
The US spot Bitcoin ETFs saw a significant influx of funds in August, with $3.5 billion flowing into them, marking the highest since July 2025.
This surge was triggered by Treasury Secretary Scott Bessent's announcement to rein in US borrowing costs, which sparked the unwinding of record leveraged bets and rekindled the debasement trade.
As a result, Bitcoin climbed 25% in August, its best month since November 2024. However, momentum stalled near the $80,000 mark before prices slipped to $76,393 on Tuesday.
Citigroup's Alex Saunders and Vinh Vo noted that the rebound has brought prices closer to the flow-weighted average cost for spot Bitcoin ETF buyers, roughly in the $80,000 to $83,000 range. They stated that these flows are a key price driver.