Bitcoin ETFs Struggle to Break Even as Oil Prices Soar

Despite recent gains, Bitcoin exchange-traded funds (ETFs) in the US still have a long way to go before breaking even this year. According to data from SoSoValue, these funds saw a massive influx of $3.52 billion in August and another $770.15 million so far this month.

However, this momentum is not enough to offset the losses suffered during May and June when institutional capital fled the funds at an alarming rate. In fact, these two months alone wiped out a staggering $4.51 billion, completely erasing the gains made in March and April.

The funds remain down approximately $1 billion year-to-date. Analysts at crypto exchange Bitfinex warn that investors must continue buying while short-term yields remain elevated to indicate that policy rates are no longer binding on Bitcoin's price.

With the US inflation data due this Thursday, market participants will be watching closely for any signs of a shift in investor behavior. Meanwhile, rising oil prices have sparked concerns about potential inflationary pressures and risk aversion across global financial markets.