Ark and 21Shares’ ARKB fund attracted $18.34 million.
Exchange-traded funds (ETFs) that track the spot price of Bitcoin in the United States saw daily net inflows of $39.02 million on Thursday, following a day of negative flows.
SoSoValue data indicates that Ark and 21Shares’ $18.34 million ARKB fund accounted for the majority of these inflows.
Grayscale’s Bitcoin Mini Trust received $5.18 million in inflows, while Fidelity’s FBTC recorded inflows of $11.47 million.
More Funds See Inflows
VanEck’s HODL, which received $4.95 million, and Franklin Templeton’s Bitcoin fund, which received $3.38 million, are two other noteworthy contributors to the inflows.
Bitwise’s BITB saw positive movement as well, registering inflows of $2.22 million.
Grayscale’s GBTC stood out among Bitcoin ETFs, recording outflows of $6.51 million, the only one to do so despite the overall positive trend.
In the meantime, there were no net inflows reported by BlackRock’s IBIT, the biggest spot Bitcoin ETF by net assets. Notably, since August 27, there have been no new inflows into IBIT.
The daily volume of trading for the 12 Bitcoin ETFs decreased to $896.92 million from $1.27 billion the day before.
These funds have received $17.03 billion in net inflows since their January launch.
On the other hand, Thursday saw net outflows of $20.14 million from U.S. spot Ethereum ETFs, which is the second day in a row of negative flows.
On September 12, the total net inflow of Bitcoin spot ETFs was $39.0239 million. Grayscale ETF GBTC outflowed $6.5123 million, Grayscale mini ETF BTC inflowed $5.1771 million, ARKB inflowed $18.3424 million, and Fidelity ETF FBTC inflow was $11.4651 million.…
— Wu Blockchain (@WuBlockchain) September 13, 2024
The outflows were limited to Grayscale’s ETHE; there was no movement in the other eight Ethereum ETFs.
Ethereum ETFs saw a decline in total daily trading volume to $106.14 million from $126.22 million on Wednesday.
There have been $582.74 million in cumulative net outflows from Ethereum ETFs overall.
The inflows coincide with Bitcoin maintaining its stability around $58,000 despite a 0.6% decline to $57,916.
After weak U.S. non-farm payroll data last week, the price of cryptocurrency fell below $53,000, but it has since recovered.
For more market guidance, investors are now anticipating the Federal Reserve’s next Open Market Committee meeting.
How Would Rate Cuts Impact Crypto Market?
According to Ryan Lee, Chief Analyst at Bitget Research, a 25 or 50 basis point reduction in the Federal Reserve’s benchmark interest rate is likely to have a positive effect on the cryptocurrency market.
A 25 basis point reduction, according to a statement from Lee, “signals moderate economic concerns” and may cause cryptocurrency prices to gradually rise as investors look for higher returns outside of traditional markets.
There will likely be little volatility and a modest recovery.
“Investors may gradually reallocate funds from low-yield traditional assets to riskier ones, leading to a moderate market upswing,” he wrote.
A 50 basis point cut, on the other hand, would indicate more serious economic concerns and might lead to large capital inflows into cryptocurrencies, especially Bitcoin, as investors shift to riskier assets.
Both increased volatility and a stronger market rally would come from this.
“In the short term, as investor sentiment swings, the crypto market may experience sharp price volatility, especially during the initial phase as the market digests the positive news,” Lee claimed
Long-term, he predicted that both rate cuts would heighten anticipations of additional Federal Reserve easing, thereby bolstering the market for cryptocurrencies.