Bitcoin ETFs Draw Record $517M in Net Inflows Amid Crypto Rally

U.S. spot Bitcoin ETFs experienced their strongest single session since May 4, with a total of $517.2 million in net inflows on Wednesday. This influx of funds brings the total August inflows to $1.47 billion, with the week's total already surpassing $1 billion, a benchmark not seen since January 16. The surge in Bitcoin ETF inflows coincided with a broader crypto rally and a U.S. Treasury decision to expand buybacks of longer-dated government debt.

The buying activity was also accompanied by a sharp increase in institutional demand, according to PrimeXBT senior market analyst Jonatan Randin. Randin noted that the Treasury's move pushed markets toward a currency-debasement interpretation rather than a conventional growth trade, which led to a decline in yields and the dollar.

Bitcoin traded near $72,000 on Thursday, up 11% over 24 hours, while Ether rose 19% to about $2,286. The simultaneous demand for both Bitcoin and Ether ETFs suggests that the latest fund flows extended beyond Bitcoin.