Bitcoin ETF Inflows Surge to $999 Million Amid Fed Rate Hike

A $999 million net inflow into US spot Bitcoin ETFs on September 21 is being hailed as a significant event in the crypto market. However, this figure is only half the story for German investors, who are unable to access these funds due to EU regulations.

The data from SoSoValue shows that BlackRock's fund took in $381 million, while Ark Invest and 21Shares' product gathered $289 million. Cumulative net inflows across all US spot Bitcoin ETFs stand at $56.16 billion, with BlackRock's fund alone accounting for $64.506 billion.

The reason for this discrepancy is due to the legacy holdings of several issuers, including the Grayscale trust, which was converted into an ETF in January 2024 and has seen persistent outflows since then. This drag on the group total highlights the importance of considering the underlying assets and their associated risks when investing in these funds.

The timing of this event is also noteworthy, as it occurred just after the US Federal Reserve raised its policy rate by 25 basis points to a range of 3.75 to 4.00 percent on September 16. While rising rates are typically seen as a headwind for assets with no running income, such as Bitcoin, the price has not fallen but instead recovered and surpassed its previous highs.

The market capitalization of Bitcoin now stands at around $1.73 trillion, with the price reaching a daily high of $87,248 on Bitstamp exchange. This marks a significant milestone for the cryptocurrency, which is trading at levels not seen since January 2026.