Bitcoin ETFs Flooded with $1 Billion as Price Hits $84,000
Bitcoin (BTC) exchange-traded funds (ETFs) pulled in nearly $1 billion on Monday, September 21. The influx of money came as BTC's price briefly topped $84,000, its first visit to that level since January 31.
The short squeeze that drove the price higher had already occurred before any same-day ETF buying took place. This timing raises questions about which move actually came first - the derivatives market or ETF demand.
Historically, flows have tracked BTC's price rather than leading it. Between September 9 and 16, spot Bitcoin ETFs posted net outflows on five of six trading days. Flows didn't turn sustainably positive again until September 17, when BTC's price resumed climbing.
The data available shows that the futures market moved first, with Wall Street's money showing up after. Sustained inflows can still add real buying pressure to a rally already underway, but it appears they may not be capable of starting one on their own.