Treasury Buyback Boosts US Bitcoin ETF Inflows to Billions
The recent rally in US Bitcoin funds can be attributed to changes in fiscal policy rather than specific crypto-related news. According to CoinMarketCap, the Treasury Department's decision to expand buybacks of long-dated government bonds has driven a significant increase in inflows for Bitcoin exchange-traded funds (ETFs).
Since the announcement, Bitcoin ETFs have absorbed billions of dollars, erasing losses that had persisted for most of 2026. The shift is particularly notable given that the same funds lost close to $750 million across two days in mid-September after the CLARITY Act failed a Senate vote.
BlackRock's IBIT drove much of the recovery, with its weekly total reaching $1.2 billion, its second-best week since October 2025. Fidelity's FBTC also posted its strongest week since early September of last year at $701.7 million. Smaller contributions came from Ark and 21Shares' ARKB and Morgan Stanley's fund.
NovaDius Wealth Management's Nate Geraci quantified the Treasury connection directly, writing that the funds had taken in $4.6 billion specifically since the buyback announcement. Bloomberg Intelligence's Eric Balchunas addressed a question hanging over the rally: how much of it reflects genuine demand rather than hedge funds arbitraging ETF shares against futures.