On Thursday, U.S. spot Bitcoin exchange-traded funds (ETFs) saw a significant turnaround, with net inflows reaching $39.02 million. This marked a recovery from the negative flows observed the previous day.
Leading ETFs Drive Inflows
According to data from SoSoValue, the largest inflows were directed to Ark and 21Shares’ ARKB fund, which secured $18.34 million. Fidelity’s FBTC followed closely, attracting $11.47 million, while Grayscale’s Bitcoin Mini Trust recorded $5.18 million in inflows.
More Funds Report Positive Activity
Other notable inflows included VanEck’s HODL, which recorded $4.95 million, and Franklin Templeton’s Bitcoin fund, which gathered $3.38 million. Bitwise’s BITB also posted gains with $2.22 million in inflows.
However, despite the overall upward trend, Grayscale’s GBTC stood out with $6.51 million in outflows, making it the only Bitcoin ETF to report negative flows. In contrast, BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, showed no new inflows, remaining unchanged since August 27.
Bitcoin ETF Trading Volume Decreases
On the trading side, the 12 Bitcoin ETFs recorded a lower daily volume of $896.92 million, down from $1.27 billion the previous day. Since their launch in January, these funds have accumulated $17.03 billion in total net inflows.
Ethereum ETFs See Continued Outflows
While Bitcoin ETFs experienced a rebound, U.S. spot Ethereum ETFs saw net outflows of $20.14 million on Thursday, marking the second straight day of negative flows. The total outflow of Grayscale’s ETHE ETF amounted to $20.1396 million, contributing solely to the overall outflows.
The total daily trading volume for Ethereum ETFs fell to $106.14 million, compared to $126.22 million on Wednesday. Overall, Ethereum ETFs have recorded cumulative net outflows of $582.74 million.
Bitcoin Price Holds Steady
Despite fluctuations in the ETF market, Bitcoin has remained stable around the $58,000 mark, with a slight 0.6% dip to $57,916. Last week, the cryptocurrency dropped below $53,000 following weak U.S. non-farm payroll data but has since rebounded. Investors are now focusing on the Federal Reserve’s upcoming Open Market Committee meeting for further direction.
Impact of Potential Federal Reserve Rate Cuts on Crypto
Ryan Lee, Chief Analyst at Bitget Research, suggests that a potential Federal Reserve rate cut could have a positive effect on the cryptocurrency market. He noted that a 25-basis point cut would signal moderate economic concerns and lead to a gradual rise in crypto prices as investors seek higher returns outside traditional markets.
In contrast, a 50-basis point cut could indicate deeper economic issues, triggering significant capital inflows into cryptocurrencies, especially Bitcoin. While this may fuel a strong rally, it could also result in heightened volatility.
Lee explained that in the short term, the crypto market could experience sharp price swings as investor sentiment shifts. Over the long term, either rate cut would likely bolster demand for cryptocurrencies by reinforcing expectations of continued Federal Reserve easing.
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