Daily News 19

Tag: Bitcoin ETFs

  • Bitcoin ETFs Erase $5.8 Billion Hole

    Bitcoin ETFs Erase $5.8 Billion Hole

    Key Highlights

    • U.S. spot Bitcoin ETFs have reversed a $5.8 billion year-to-date deficit to post nearly $800 million in net inflows, per SoSoValue data.
    • Nearly $4 billion of inflows arrived after Treasury Secretary Scott Bessent’s August announcement of increased bond purchases amid surging yields.
    • Despite a six-day winning streak, 2025 inflows remain far below the $35.2 billion recorded in 2024 and $21.4 billion in 2025 full-year totals.

    Bitcoin ETFs Stage Dramatic Turnaround as Net Inflows Turn Positive for 2025

    Investors in U.S.-listed spot Bitcoin exchange-traded funds have engineered a remarkable reversal. After sitting on a staggering $5.8 billion year-to-date outflow as recently as July 13, according to CoinDesk’s analysis of SoSoValue data, the funds now boast nearly $800 million in net inflows for the year. The swing coincides with Bitcoin’s price recovery to approximately $85,000 from a June low below $58,000, a movement that has led several analysts to declare a new bull market is already underway.

    Liquidity Injection Catalyzes $4 Billion Inflow Surge

    The inflection point aligns closely with a pivotal macroeconomic shift. Since U.S. Treasury Secretary Scott Bessent’s August announcement detailing increased bond purchases—a liquidity management tool deployed as bond yields climbed to multi-year highs—nearly $4 billion has flowed into the ETF complex. This policy-driven liquidity expansion appears to have provided the tailwind necessary to overcome the persistent selling pressure that defined the first half of the year.

    Six-Day Winning Streak Tests Resistance at $85,000

    Momentum remains visible in recent trading sessions. The ETF suite has recorded six consecutive days of net inflows, a streak that has persisted even as Bitcoin’s price rally has stalled near the $85,000 level since Tuesday. The decoupling of fund flows from immediate price action suggests institutional allocation decisions are increasingly driven by strategic portfolio positioning rather than short-term momentum chasing.

    Why This Matters

    The shift from deep negative territory to positive year-to-date flows marks a critical psychological and structural threshold for the digital asset ecosystem. The 2024 calendar year saw $35.2 billion in total net inflows, while the source cites a $21.4 billion figure for 2025—indicating that despite the recent rebound, the current pace remains well below the run-rate established during the peak adoption phase. The sustained inflows following the Treasury’s bond-buying program highlight the sensitivity of Bitcoin-linked products to global liquidity conditions, reinforcing the narrative that Bitcoin functions as a liquidity-sensitive risk asset. Market participants will closely monitor whether the six-day streak can extend into a sustained trend capable of closing the gap with prior-year totals, and whether Bitcoin can decisively break above the $85,000 resistance that has capped gains this week.

    Frequently Asked Questions

    How much have U.S. spot Bitcoin ETFs attracted in net inflows for 2025?

    As of the latest data from SoSoValue, the funds hold nearly $800 million in net inflows year-to-date, a dramatic reversal from a $5.8 billion deficit recorded on July 13.

    What triggered the recent surge in ETF inflows?

    Approximately $4 billion of the inflows occurred after U.S. Treasury Secretary Scott Bessent’s August announcement of increased bond purchases, implemented as bond yields reached multi-year highs.

    How do current 2025 inflows compare to previous years?

    Despite the turnaround, the $800 million year-to-date figure remains significantly smaller than the $35.2 billion recorded for full-year 2024 and the $21.4 billion cited for 2025.

  • Bitcoin Bear Markets Growing Milder, Signaling Potential Bull Market Ahead

    Bitcoin Bear Markets Growing Milder, Signaling Potential Bull Market Ahead

    Key Highlights

    • Bitcoin ETFs have shifted ownership toward financial advisers and professional investors who typically allocate around 2% of portfolios to the asset, compared to 20–30% or more for crypto-native retail investors.
    • Institutional rebalancing behavior—buying after declines and selling after surges to maintain target weights—is expected to soften sell-offs but also cap the magnitude of rallies.
    • Risk Dimensions CIO Mark Connors predicts smaller drawdowns than the 70–80% crashes of prior cycles, but warns that reduced volatility comes with moderated returns and “smaller blow-off tops.”

    ETFs Reshape Bitcoin Ownership From Retail to Professional Hands

    Before the launch of spot bitcoin exchange-traded funds, ownership of the largest cryptocurrency was concentrated among retail investors, crypto-native funds, and traders making tactical bets. According to Rasmussen, the introduction of ETFs provided financial advisers and other professional investors with a familiar, regulated vehicle to add bitcoin to traditional portfolios. This structural shift has fundamentally altered the composition of the investor base, bringing in participants who approach the asset through the lens of portfolio construction rather than speculative conviction.

    Allocation Discipline Creates Divergent Risk Profiles

    The difference in allocation size creates starkly different risk experiences. Rasmussen noted that a professional investor might allocate roughly 2% of a portfolio to bitcoin, whereas crypto-focused retail investors often commit 20%, 30%, or more of their capital to the asset. Consequently, a 50% price decline impacts these groups in vastly different ways. “If it goes down 50%, my portfolio is only down 1%,” Rasmussen said in an interview, describing how an investor with a 2% allocation might view the decline. For a retail holder with a 30% allocation, the same drop would erase 15% of total portfolio value.

    Rebalancing Mechanics May Dampen Volatility Cycles

    Beyond allocation size, the discipline of periodic rebalancing introduces a mechanical counter-cyclical force. An adviser targeting a 2% bitcoin weight may buy after a steep decline to restore the target allocation, providing a floor of demand during sell-offs. Conversely, if bitcoin surges and grows to 5% of the portfolio, that same investor may sell a portion at the next rebalancing date, creating natural supply at higher prices. This dynamic could soften the depth of corrections while simultaneously limiting the explosive upside that characterized earlier market cycles.

    Institutionalization Brings Trade-Offs: Smaller Drawdowns, Moderated Returns

    Mark Connors, chief investment officer at Risk Dimensions, expects growing institutional participation to contribute to smaller drawdowns than the 70–80% declines observed in previous bitcoin cycles. However, he cautioned that investors should not expect to get something for nothing. Connors said bitcoin’s volatility has fallen over time, but its returns have moderated as well. More institutional investors could mean “smaller blow-off tops due to rebalancing,” he said, highlighting the trade-off between reduced downside risk and capped upside potential as the asset matures within traditional financial infrastructure.

    Why This Matters

    The transition from a retail-dominated market to one with significant professional participation marks a structural maturation for bitcoin as an asset class. The introduction of spot ETFs in the United States has accelerated this shift by lowering operational and custody barriers for registered investment advisors, family offices, and institutional allocators. As these investors apply modern portfolio theory—fixed allocations, systematic rebalancing, and risk-budgeting frameworks—the statistical properties of bitcoin’s price action are likely to evolve. Historically, bitcoin’s boom-bust cycles were amplified by homogeneous, high-conviction holders prone to panic selling and euphoric buying. A more diverse holder base with differentiated time horizons and mandate constraints could produce a return profile that resembles other alternative assets: lower volatility, reduced tail risk, but also diminished alpha relative to the asset’s early years. For allocators, this raises strategic questions about bitcoin’s role in a portfolio—whether it remains a high-beta growth sleeve or transitions toward a diversifier with equity-like risk and modestly enhanced returns.

    Frequently Asked Questions

    How does a typical professional investor’s bitcoin allocation differ from a retail crypto investor’s?

    Professional investors such as financial advisers typically allocate around 2% of a portfolio to bitcoin, while crypto-focused retail investors often hold 20%, 30%, or more of their total capital in the asset.

    What effect does portfolio rebalancing have on bitcoin’s price cycles?

    Systematic rebalancing creates counter-cyclical flows: advisers buy bitcoin after price declines to restore target weights, supporting prices during corrections, and sell after sharp rallies to trim overweight positions, capping upside momentum.

    Will institutional adoption eliminate bitcoin’s volatility entirely?

    No. Mark Connors of Risk Dimensions notes that while institutional participation may reduce the severity of drawdowns compared to historical 70–80% crashes, volatility will persist and returns are likely to moderate, resulting in “smaller blow-off tops due to rebalancing.”

  • Bitcoin Rally Driven by ‘Serious Institutional Money,’ Devere Says

    Bitcoin Rally Driven by ‘Serious Institutional Money,’ Devere Says

    Key Highlights

    • Devere Group CEO Nigel Green argues Bitcoin’s recovery is gaining durability from sustained institutional inflows into regulated U.S. spot ETFs, marking a shift from leveraged speculation to “patient capital.”
    • Despite a net inflow of approximately $6.1 million across five trading days through Sept. 18, the trend remains fragile after $746.3 million in withdrawals on Sept. 15–16 nearly offset recent gains.
    • The Federal Reserve’s Sept. 16 rate hike to 3.75%–4% raises the opportunity cost of holding non-yielding Bitcoin, while the CLARITY Act’s legislative stall delays regulatory clarity that Green says could unlock pension and wealth-manager allocations.

    Institutional Flows Signal Market Shift, Says Devere Group CEO

    Bitcoin’s recent price recovery is underpinned by a structural shift in market participation, according to Devere Group Chief Executive Officer Nigel Green. In comments issued Sept. 21, Green asserted that consistent purchasing through regulated investment products indicates buyers have regained control of the market. He characterized the current momentum as fundamentally different from previous rallies driven by leveraged speculation.

    “The market’s momentum has flipped, and this time there’s serious institutional money behind it,” Green said, adding:

    “Billions are flowing into regulated bitcoin products week after week. It’s patient capital that plans to stay, a very different animal from the leveraged speculation that fuelled past rallies.”

    ETF Data Shows Mixed Recovery After Volatile Week

    Flow data for U.S. spot bitcoin exchange-traded funds (ETFs) supports Green’s observation of renewed demand, though the net picture remains modest. Farside Investors’ rounded daily figures show the funds attracted $433 million in net inflows on Sept. 18, following $159.5 million the previous session and $159.9 million on Sept. 14. However, those purchases only narrowly offset withdrawals of $746.3 million recorded on Sept. 15 and 16, leaving approximately $6.1 million in net inflows across the five trading days.

    The recovery began Thursday, Sept. 18, when bitcoin ETFs returned to positive flows after two consecutive sessions of withdrawals. BlackRock’s IBIT led the rebound, while ether and XRP funds continued losing money. The divergence suggests renewed demand for bitcoin products has not yet translated into consistent buying across the broader crypto ETF market.

    Monetary Policy Creates Countervailing Pressure

    Green’s supply-side argument—that Bitcoin’s fixed cap of 21 million coins offers a hedge against currency debasement—runs against a tightening monetary backdrop. The Federal Reserve raised its benchmark target range to 3.75%–4% on Sept. 16, a unanimous quarter-point increase accompanied by language describing inflation as elevated. Higher interest rates increase returns on interest-bearing assets, raising the opportunity cost of holding Bitcoin, which pays no yield.

    A separate assessment from Grayscale characterized the latest increase as a limited adjustment within the current Fed cycle. The asset manager distinguished one or two potential increases in 2026 from the prolonged tightening cycle that began in 2022. That interpretation aligns with Green’s view that demand can remain resilient despite higher rates, though both assessments represent forward-looking market outlooks rather than established facts.

    Regulatory Uncertainty Tempers Optimism

    Green identified clearer U.S. crypto rules as a conditional catalyst that could encourage pension funds and wealth managers to increase exposure. His forecast depends on large allocators becoming more comfortable with the regulatory framework governing digital assets, which would extend demand beyond current ETF buyers into a wider pool of portfolio allocations.

    The legislative backdrop, however, delivered a setback on Sept. 15 when senators failed to advance the CLARITY Act toward floor debate. The procedural vote required 60 votes to move forward; its failure left the proposed market-structure framework unresolved. Green nevertheless expects a larger potential pool of buyers if regulation becomes clearer, while acknowledging that volatility and pullbacks will continue.

    “Once big allocators see rules they can work with, the next wave of demand could dwarf this one,”

    he described, elaborating:

    “The crypto winter looks to be ending. Every dip that gets bought strengthens the case that the floor has moved higher.”

    “Bitcoin is a permanent fixture in the global portfolio conversation, and the bulls know it,”

    the executive concluded.

    Why This Matters

    The interplay between institutional adoption, monetary policy, and regulatory progress defines Bitcoin’s current inflection point. Sustained ETF inflows—particularly from vehicles like BlackRock’s IBIT—signal growing acceptance among traditional financial intermediaries, yet the net flow figures remain marginal after sharp reversals. The Federal Reserve’s higher-for-longer rate posture introduces a persistent headwind for non-yielding assets, while the CLARITY Act’s stall underscores that U.S. regulatory certainty remains a work in progress. Market participants should monitor whether the “patient capital” Green describes withstands the dual test of rate sensitivity and legislative gridlock, or whether the recent rebound proves another bear-market rally.

    Frequently Asked Questions

    What were the net flows into U.S. spot Bitcoin ETFs for the week ending Sept. 18?

    According to Farside Investors data cited in the report, U.S. spot Bitcoin ETFs saw approximately $6.1 million in net inflows across the five trading days through Sept. 18. This followed $433 million in inflows on Sept. 18, $159.5 million on Sept. 17, and $159.9 million on Sept. 14, which were largely offset by $746.3 million in withdrawals on Sept. 15–16.

    How does the Federal Reserve’s September rate hike affect Bitcoin’s appeal?

    The Fed raised its benchmark rate to 3.75%–4% on Sept. 16, increasing the opportunity cost of holding Bitcoin because the cryptocurrency does not generate interest income. Higher yields on bonds and cash equivalents make non-yielding assets comparatively less attractive, though some analysts, including Grayscale, view the hike as a limited adjustment rather than a return to aggressive tightening.

    What is the CLARITY Act and why does its failure matter for Bitcoin?

    The CLARITY Act is a proposed U.S. market-structure framework for digital assets. Its failure to advance past a procedural vote on Sept. 15—falling short of the 60 votes needed—leaves regulatory rules unresolved. Devere Group CEO Nigel Green argues that clearer rules would unlock allocations from pension funds and wealth managers, potentially driving a larger wave of institutional demand than current ETF flows.

  • Microtransactions Dominate Bitcoin Usage, Signaling Major Shift

    Microtransactions Dominate Bitcoin Usage, Signaling Major Shift

    Key Highlights

    • Micro-transactions under 0.01 BTC now represent nearly 80% of all Bitcoin network activity, signaling a fundamental shift in on-chain usage patterns.
    • The transition from large-value transfers to high-frequency, small-value transactions aligns with rising institutional interest in Bitcoin exchange-traded products (ETPs).
    • Analysts suggest the trend could enhance price stability and accelerate mainstream adoption by demonstrating Bitcoin’s utility for everyday payments.

    Bitcoin Network Dynamics Shift Toward Micro-Transaction Dominance

    Recent on-chain data reveals a structural transformation within the Bitcoin network, where transactions valued below 0.01 BTC—equivalent to roughly $600 at current prices—now account for approximately 80% of total transaction volume. This marks a decisive departure from historical patterns dominated by large-value settlements and whale movements, suggesting the protocol is increasingly functioning as a medium for frequent, low-value exchanges rather than solely a store-of-value settlement layer.

    Changing User Behavior and Institutional Catalysts

    The surge in micro-transaction activity coincides with growing traction for Bitcoin exchange-traded products, particularly in the United States following the SEC’s approval of spot Bitcoin ETFs in January 2024. Asset managers such as Grayscale Investments have reported that Bitcoin ETPs are attracting capital flows at a pace rivaling, and in some periods exceeding, traditional gold-backed funds. This institutional wrapper is lowering barriers to entry for retail and advisory audiences, potentially driving the increased on-chain fragmentation observed in recent months.

    Scalability Implications and Network Utility

    As the proportion of sub-0.01 BTC transactions climbs, questions around Bitcoin’s base-layer scalability and fee market dynamics intensify. While the Lightning Network and other layer-2 solutions are designed to absorb high-frequency, low-value traffic, the persistence of such activity on-chain indicates either growing user comfort with base-layer fees or delayed adoption of off-chain alternatives. The trend underscores the evolving narrative of Bitcoin as both a reserve asset and a functional payment rail, a dual role that could reshape long-term demand dynamics.

    Why This Matters

    The dominance of micro-transactions represents a potential inflection point for Bitcoin’s maturation as a financial asset. Historically, high concentrations of large transactions correlated with speculative cycles and custodial reshuffling. A shift toward granular, user-initiated activity suggests deeper integration into commercial and peer-to-peer economies. Coupled with the institutionalization via ETPs—now recognized by major allocators as a legitimate portfolio diversifier alongside gold—this on-chain evolution may support a more resilient price floor and broader acceptance in regulatory and commercial frameworks. Market participants should monitor whether layer-2 adoption accelerates in response to base-layer congestion, and how fee revenue trends affect miner economics post-halving.

    Frequently Asked Questions

    What qualifies as a micro-transaction on the Bitcoin network?

    In the context of the recent data, a micro-transaction is defined as any on-chain Bitcoin transfer valued below 0.01 BTC, which at current market prices represents approximately $600 or less.

    How do Bitcoin ETPs influence on-chain transaction patterns?

    Bitcoin exchange-traded products, such as those offered by Grayscale, BlackRock, and Fidelity, enable traditional investors to gain exposure without self-custody. Increased ETP adoption often correlates with higher on-chain activity as issuers manage creation and redemption baskets, while broader accessibility may spur retail usage for payments and transfers.

    Does the rise in micro-transactions affect Bitcoin’s scalability?

    A sustained high volume of small on-chain transactions can increase network congestion and fee pressure, potentially accelerating demand for layer-2 solutions like the Lightning Network. However, it also demonstrates real-world utility, which is a positive signal for long-term adoption.

  • Bitcoin ETFs Record $450M Outflow, Biggest Since June

    Bitcoin ETFs Record $450M Outflow, Biggest Since June

    Spot Bitcoin ETFs See Largest Outflows Since June as Senate Crypto Bill Stalls

    U.S.-listed spot Bitcoin exchange-traded funds recorded their most significant day of net outflows since late June on Tuesday, reversing the previous day’s inflows after a major cryptocurrency legislative effort stalled in the Senate.

    Net Outflows Top $450 Million

    The 13 U.S.-listed funds saw a net $450.4 million outflow on Tuesday, according to data from Farside Investors. This follows a $159.9 million net inflow on Monday. The single-day withdrawal marks the largest since June 24, when the funds lost $469 million amid a broader technology stock sell-off that pressured risk assets.

    Fund-by-Fund Breakdown

    Fidelity’s FBTC led the outflows, shedding $214.8 million. The BlackRock iShares Bitcoin Trust followed with $161.7 million in withdrawals. Other notable outflows included:

    • Grayscale Bitcoin Trust ETF (GBTC): $44.1 million
    • ARK 21Shares Bitcoin ETF (ARKB): $17.4 million
    • Bitwise Bitcoin ETF (BITB): $12.4 million

    Bitcoin Price Reacts

    At the time of writing, Bitcoin is trading at $75,700, representing a 2.5% decline over the last 24 hours, according to CoinMarketCap data. The price movement coincides with the ETF flow reversal and the legislative setback in Washington.

    Legislative Context

    The sharp reversal in fund flows comes as a major crypto market structure bill stalled in the U.S. Senate, removing a near-term catalyst that had supported positive sentiment around regulated crypto investment products.

  • Bitwise Investment Director Attributes Bitcoin Rally to Strong Demand Despite Strategy Sale

    Bitwise Investment Director Attributes Bitcoin Rally to Strong Demand Despite Strategy Sale

    Bitwise Investment Director Matt Hougan has weighed in on Strategy’s recent Bitcoin sale, noting that the transaction reflects routine capital management rather than financial distress. Despite the company selling over $200 million worth of BTC, the cryptocurrency’s price continued to climb — a signal Hougan says points to robust buying demand across the market.

    Sale Driven by Capital Management, Not Funding Pressure

    According to Hougan, Strategy’s decision to offload a portion of its Bitcoin holdings was executed to meet dividend payment obligations and manage cash reserves. The move should be viewed as part of a broader capital management strategy, not an indication that the firm is facing liquidity issues or forced to reduce its position under duress.

    As one of the largest institutional holders of Bitcoin on its balance sheet, Strategy’s trading activity is closely monitored by market participants for potential price impact. However, Hougan emphasized that the market absorbed the sale without disruption, suggesting sufficient buyer appetite to offset large-scale selling.

    Institutional Investors Poised to Become Primary Market Drivers

    Looking ahead, Hougan expects Strategy’s influence on Bitcoin’s price to gradually diminish. He argues that as institutional investors gain greater market share, they will increasingly serve as the primary marginal buyers of BTC. This structural shift is being accelerated by the growth of spot Bitcoin exchange-traded funds (ETFs), asset managers, and other institutional investment vehicles.

    The diversification of capital flows into Bitcoin through these channels could expand the investor base and deepen market liquidity. Hougan’s analysis implies that Bitcoin demand is becoming more resilient and less dependent on the actions of any single corporate entity.

    Market Absorption Signals Strengthening Independent Demand

    The fact that Bitcoin’s price rose despite a significant sale by a major holder underscores a key development: the market now has enough buying power to absorb large sell orders without meaningful downside pressure. This dynamic supports the view that Bitcoin’s demand fundamentals are strengthening independently of individual corporate transactions.

    This is not investment advice.

  • Michael Saylor Calls Bitcoin ‘digital capital’ as BTC Bull Case Faces Reality Test

    Michael Saylor Calls Bitcoin ‘digital capital’ as BTC Bull Case Faces Reality Test

    Michael Saylor Positions Bitcoin as ‘Digital Capital’ and Potential Global Reserve Asset

    Strategy executive chairman Michael Saylor continues to advocate for Bitcoin (BTC) as a long-term store of value, recently outlining an investment thesis that frames the cryptocurrency as “digital capital” and a potential new global reserve asset.

    Why Saylor Calls Bitcoin an Open Global Reserve Asset

    According to Strategy, Bitcoin combines qualities found across traditional assets—scarcity, portability, divisibility, global liquidity, independent verification, and the ability to transfer ownership without a central issuer. Saylor argues that instead of viewing Bitcoin mainly as a payment network, investors should consider it as a store of wealth and potential hedge against the loss of purchasing power.

    However, Saylor made clear that in no sense did he argue that Bitcoin must replace the dollar, banks, or traditional financial markets. Instead, he believes Bitcoin could capture a portion of the monetary premium held in assets such as gold, real estate, equities, bonds, and collectibles.

    In a previous report published by AMBCrypto, Saylor called Bitcoin “digital monetary energy” and stated:

    Bitcoin is the engineering solution to the problem of money.

    Four-Year Investment Horizon and Historical Returns

    Beyond theoretical frameworks, Saylor highlighted a four-year investment horizon by analyzing Bitcoin’s rolling historical returns through September 4, 2026:

    • Median one-year total return: approximately +97.7%
    • Median two-year total return: approximately +272.2%
    • Median three-year total return: approximately +481.7%
    • Median four-year total return: approximately +1,301.7%

    Volatility remains significant. Bitcoin’s worst one-year period lost 83.6%, while the worst four-year period still returned approximately +32.6%.

    According to the Strategy report, Bitcoin has delivered a 62.8% annualized return over the past 10 years and 37.2% since Strategy’s “Bitcoin Standard Era” began in August 2020.

    Yet as of September 4, 2026, Bitcoin was 36.1% below its all-time high, with a historical maximum drawdown of roughly 93.1%. Strategy itself sold 6,916 BTC in 2026 alone, though a recent purchase of 4,603 BTC on August 31 suggests renewed buying momentum.

    Bitcoin’s Reality Test: Tug-of-War Between Long-Term Buying and Short-Term Selling

    At press time, Bitcoin was trading at $77,106.64 after a modest 24-hour drop but a hike of over 22% in the past month. The asset remains caught between strong long-term accumulation and short-term selling pressure.

    Market dynamics reflect mixed signals: U.S. CPI met expectations overall, but hotter core inflation raised concerns about higher-for-longer rates, pushing BTC to $76,700 before recovering toward $80,000 and falling back into the $77,000s.

    While Spot Bitcoin ETFs saw three consecutive weeks of inflows and long-term investors continued accumulating, weak spot demand, Binance’s two-year-high BTC holdings, and rising futures selling are adding downward pressure.

    CryptoQuant summarized the shift in market psychology:

    Investor sentiment has shifted from FOMO to loss aversion.

    Key Takeaways

    • Saylor does not suggest Bitcoin must replace the dollar, banks, or traditional financial markets.
    • Bitcoin is caught in a tug-of-war between strong long-term buying and short-term selling pressure.
  • Bitcoin vs Ethereum ETFs: Which asset is winning September’s flow battle?

    Bitcoin vs Ethereum ETFs: Which asset is winning September’s flow battle?

    Bitcoin ETFs See $462.7 Million Weekly Outflows as Price Drops Below $78K

    Following a robust August rally that brought $3.52 billion in monthly inflows to spot Bitcoin ETFs, September has opened with significant selling pressure. During the week of September 8–11, these funds recorded cumulative net outflows of $462.73 million, coinciding with Bitcoin’s price decline from approximately $79,000 to $77,324.76—a 2.9% weekly drop.

    Daily Breakdown of Bitcoin ETF Flows

    The week began negatively on September 8 with $46.6 million in net outflows. Fidelity recorded $17.1 million in redemptions, Invesco saw $4.7 million exit, and Grayscale’s GBTC led with a substantial $65.5 million outflow, according to SoSo Value data.

    Selling intensified on September 9, pushing net outflows to $120.2 million. BlackRock experienced a $19.5 million outflow, ARK Invest’s ARKB lost $78.0 million, and GBTC shed another $27.2 million.

    September 10 marked the worst session with $282.7 million in net outflows. Pressure eased slightly on September 11, limiting outflows to $13.2 million. Across the four-day period, ARKB and GBTC emerged as the primary sources of selling pressure.

    Ethereum ETFs Diverge With Strong Late-Week Inflows

    Spot Ethereum ETFs followed a different trajectory, per Farside Investors data. After a weak September 8 showing $24.3 million in net outflows, the products reversed decisively on September 9 with $34.7 million in net inflows. Selling returned on September 10 before a dramatic reversal on September 11, when Ethereum ETFs recorded $216.4 million in net inflows—the largest single-day positive total of the week.

    BlackRock’s ETHA dominated with $148.8 million in inflows, followed by BlackRock’s ETHB at $18.3 million.

    Altcoin ETFs Show Mixed Results

    Other cryptocurrency ETFs displayed varied flow patterns during the same period. Solana’s SOL ETF attracted $10.30 million in weekly inflows, driven primarily by Bitwise’s BSOL. XRP ETFs recorded zero flows, while Hyperliquid’s HYPE ETFs saw $26.42 million in net outflows, according to SoSo Value.

    Market Sentiment Remains Constructive Despite Outflows

    Despite the weekly outflows, Bitcoin’s dominance persists. The altcoin index stands at 40, indicating Bitcoin continues to lead the market, per Coinglass data. The Crypto Fear and Greed Index sits at 63—firmly in “Greed” territory—suggesting investors remain bullish and view the slowdown as temporary, according to Alternative.

    This optimism aligns with the strong inflows seen during the first week of September, supported by shifting macroeconomic expectations around U.S. monetary policy.

  • Bitcoin Below $77,000, Zcash Leads Losses as Traders Bet on Fed Rate Hike

    Bitcoin Below $77,000, Zcash Leads Losses as Traders Bet on Fed Rate Hike

    Bitcoin hovered near a critical technical threshold Thursday as risk assets sold off broadly on surging oil prices, rising Treasury yields, and mounting expectations for another Federal Reserve interest-rate hike.

    Key Support Level in Focus

    Bitget analyst Lewis Huang marked the line before the print, saying “$76,270 is an important technical support level.” Bitcoin is now less than $800 above it.

    Energy Shock Ripples Through Markets

    Brent crude ripped above $107 a barrel, up more than 6%, with West Texas Intermediate near $102. The energy shock feeds directly into the inflation data the Fed is watching. The 10-year Treasury yield pushed toward 5% and the two-year above 4.5%.

    Gold slipped toward $4,330, the dollar index firmed near 99, and the S&P 500 closed lower at about 7,594, a fourth straight decline. Asian equity futures followed, with Japan down nearly 2%, Korea more than 3% and Hong Kong close to 1%.

    Higher Real Yields Pressure Crypto

    Higher real yields drain crypto through two channels at once. They make government debt competitive with an asset that pays nothing, and they raise the cost of carrying leverage.

    U.S. spot bitcoin ETFs are already showing it, with $120 million of outflows on Wednesday, more than double Tuesday’s, while ether, $XRP and solana funds all took in money the same day.

    CPI Data and Fed Expectations

    August CPI lands at 8:30 a.m. ET, with headline inflation expected at 3.4% year over year and core at 2.4%. Interest rate futures put the odds of a hike at the Sept. 15-16 meeting near 70%, up from roughly a coin flip two weeks ago.

  • Bitcoin ETFs Still $1 Billion Short of Breaking Even in 2026

    Bitcoin ETFs Still $1 Billion Short of Breaking Even in 2026

    Investor appetite for U.S.-listed spot bitcoin exchange-traded funds (ETFs) has surged in recent weeks, yet cumulative flows for 2024 remain deeply negative.

    Strong Summer Inflows Fail to Offset Spring Selloff

    Data from SoSoValue shows a dramatic turnaround in August, which attracted a massive $3.52 billion in fresh capital. Momentum carried into September, adding another $770.15 million through the early part of the month. While the winning streak signals that the worst of the mid-year market doldrums may be over, the broader arithmetic reveals a persistent deficit.

    Despite the recent rally, the funds are still down roughly $1 billion on a year-to-date basis. The primary driver of this lingering shortfall is the brutal two-month stretch in May and June, when institutional capital exited the funds at an alarming pace. June alone wiped out a staggering $4.51 billion, completely erasing the gains accumulated during March and April. Consequently, bulls still have significant ground to cover before ETF flows break even for the year.

    Macro Catalysts Loom as Critical Test

    Market participants are now focused on whether the positive momentum can withstand upcoming macroeconomic events. “The key test now is whether those inflows survive this week’s CPI and Treasury buyback,” analysts at crypto exchange Bitfinex said in a note to CoinDesk.