Bitcoin ETFs Attract Over Half Billion in Net Inflows as Risk Appetite Returns
Bitcoin and other cryptocurrencies saw a surge in demand on Wednesday as US spot bitcoin exchange-traded funds (ETFs) attracted $517.19 million in net inflows, marking the largest daily total since May 4.
The influx of capital into these funds is attributed to improving liquidity expectations and a broader return in risk appetite, as seen in the rally of Bitcoin above $69,000 for the first time in two months, with ether reclaiming $2,000.
BlackRock's IBIT led gains with $284.7 million in net inflows, followed by Ark & 21Shares' ARKB and Fidelity's FBTC. Analysts say this renewed institutional demand is driven by current price levels being treated as constructive entry points after heavy outflows in May and June.
However, experts caution that continued momentum depends on ongoing buybacks and upcoming inflation data, with the US Treasury's decision to at least double liquidity-support buyback operations for longer-dated nominal coupon securities seen as a positive signal for risk assets like Bitcoin and other cryptocurrencies.