With approximately $102 million in interest, Fidelity’s Bitcoin ETF (FBTC) was in the lead.
Friday saw a sharp increase in inflows into U.S. spot Bitcoin exchange-traded funds (ETFs), with net purchases topping $263 million.
This marks the largest single-day inflow since July 22, driven by renewed interest as Bitcoin climbed above $60,000, a 12% increase over the past week.
The leader of the group was the Fidelity Bitcoin ETF (FBTC), which received approximately $102 million in new investments each week, for a total of $218 million in inflows.
After two weeks of poor performance, during which $467 million left the fund, there was a robust rebound.
ARK Invest and 21Shares See Major Inflows
Closely behind, with net inflows of about $99 million at the end of the day, were ARK Invest and 21Shares’ Bitcoin ETF (ARKB).
Positive inflows were also seen in other Bitcoin ETFs run by organizations like Bitwise, Franklin Templeton, Valkyrie, VanEck, and Grayscale. These results were consistent with a general trend of resurging interest in the U.S. spot Bitcoin ETF market.
Not every fund, though, experienced the same degree of success.
Both WisdomTree’s Bitcoin Fund (BTCW) and BlackRock’s iShares Bitcoin Trust (IBIT) reported no inflows on Friday.
In recent weeks, IBIT in particular has struggled. It has seen net outflows twice, on August 29 and September 9, and no inflows for multiple trading days.
Among Bitcoin ETFs, IBIT has only seen net outflows three times since its founding, which is comparatively uncommon.
U.S. spot Bitcoin ETFs ended the week with over $400 million in net inflows, despite the varying performances of the various funds, which is evidence of the general bullishness surrounding the crypto market.
Strong ETF inflows and the rise in the price of Bitcoin indicate that investor optimism is rising.
Crypto Market Rallies
The larger cryptocurrency market saw gains outside of the United States as well.
The price of bitcoin increased from $54,300 at the beginning of the week to over $60,600 by Friday.
Other well-known cryptocurrencies did the same; Ethereum (ETH) saw a weekly gain of 8% to reach $2,400.
Furthermore, according to CoinGecko data, altcoins like Toncoin (TON), Chainlink (LINK), and Avalanche (AVAX) were among the top performers.
The average cost basis of investors in Bitcoin ETFs remains higher than the current market price, according to ARK Invest, despite the recent rally.
This implies that a large number of investors who made their initial investments are now holding positions at a loss.
The MVRV Z-Score, an indicator that contrasts Bitcoin’s market capitalization with its cost basis, indicates that the cryptocurrency’s underlying value is still bullish. ARK’s report did, however, also highlight the strength of the long-term fundamentals of the asset.
According to market speculation, expectations of a potential interest rate cut by the U.S. Federal Reserve may have contributed to the recent surge in the price of Bitcoin and other cryptocurrencies.
With inflation data falling short of forecasts at 2.5%, many investors are expecting the Fed to reduce interest rates by 25–50 basis points at its upcoming meeting on September 18.
The possibility of monetary easing, along with comparable actions by the Bank of Canada and the European Central Bank, may keep the cryptocurrency market upbeat.