Bitcoin ETF Inflows Surge as BTC Breaks $65,000

The cryptocurrency market is buzzing with excitement as Bitcoin (BTC) surpasses $65,000 for the first time in nearly two months, coinciding with a significant uptick in spot Bitcoin ETF inflows. This surge comes amidst global rate cuts, setting the stage for Bitcoin’s strongest September performance on record with a 10% monthly gain. The developments signal a resurgence of institutional interest in Bitcoin as the market anticipates a bullish fourth quarter.

Spot Bitcoin ETF Inflows Hit New Heights

On September 26, spot Bitcoin ETFs witnessed an impressive $365 million in inflows, marking the highest single-day figure for the month and extending the streak of positive inflows to six consecutive days.

Ark Invest’s BTC ETF (ARKB) led the charge with $113 million in inflows, closely followed by BlackRock’s IBIT at $93.4 million. BlackRock’s Bitcoin holdings have now swelled to 359,606 BTC, solidifying its position as one of the largest holders.

Other ETFs also saw substantial inflows, with FBTC and BITB attracting $74 million and $50 million respectively. Notably, outflows have diminished significantly, with Grayscale’s GBTC experiencing only $7.7 million in outflows on Thursday, according to Farside Investors data. In total, spot Bitcoin ETFs acquired 5,602 BTC from the market.

This influx of capital coincides with robust trading volumes, particularly for BlackRock’s IBIT, which recorded $1.52 billion in trading volume, followed by ProShares Bitcoin Strategy ETF (FBTC) at $355 million.

Crypto analyst Ki Young Ju highlighted that the United States is regaining dominance in Bitcoin holdings, driven by strong demand for spot ETFs. This shift is reflected in the increasing ratio of U.S. Bitcoin holdings compared to other countries.

Institutions Gear Up for Q4 Rally

Beyond ETFs, institutional investors are positioning themselves for a potential Bitcoin rally in Q4, spurred by global monetary easing. Chinese investors, in particular, are turning to Bitcoin as a hedge against economic uncertainties following rate cuts by the People’s Bank of China (PBoC).

QCP Capital commented on the macro outlook, stating, “We believe more easing is coming from the PBoC, and they have communicated as much. Combined with the Fed joining the global cutting cycle, all major central banks (except BoJ) are now ready to inject more liquidity into the market.”

This influx of liquidity could trigger a ‘volatility supercycle,’ with industry figures like Arthur Hayes betting on a significant Bitcoin price rally. Hayes emphasized that Bitcoin “is the most technically sound way in this modern digital world to balance the profligacy of the ruling elite.”

As the cryptocurrency market enters the final quarter of the year, all eyes are on Bitcoin’s performance and the potential for continued institutional adoption through ETFs and direct investment.