The U.S. spot Bitcoin exchange-traded funds (ETFs) saw daily net inflows of $39.02 million on Thursday, rebounding after experiencing negative flows the previous day. The bulk of these inflows came from Ark and 21Shares’ ARKB fund, while Fidelity’s FBTC and Grayscale’s Bitcoin Mini Trust also saw significant inflows. Other contributors to the inflows include VanEck’s HODL, Franklin Templeton’s Bitcoin fund, and Bitwise’s BITB. Despite the positive trend, Grayscale’s GBTC recorded outflows of $6.51 million, the only Bitcoin ETF to do so. The largest spot Bitcoin ETF by net assets, BlackRock’s IBIT, reported zero net inflows.
On the trading front, 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. In contrast, U.S. spot Ethereum ETFs experienced net outflows of $20.14 million on Thursday, marking the second consecutive day of negative flows.
Grayscale’s ETHE was the sole contributor to the outflows in the Ethereum ETFs, with the remaining eight ETFs seeing no movement. Total daily trading volume for Ethereum ETFs fell to $106.14 million, down from Wednesday’s $126.22 million. Overall, Ethereum ETFs have recorded cumulative net outflows of $582.74 million. The inflows into Bitcoin ETFs come as the cryptocurrency continues to hold steady around the $58,000 mark, despite a slight drop to $57,916. Bitcoin had dipped below $53,000 following weak U.S. non-farm payroll data last week but has since rebounded.
Investors are now looking ahead to the Federal Reserve’s upcoming Open Market Committee meeting for further market direction. A Federal Reserve rate cut, whether 25 or 50 basis points, could impact the crypto market positively, according to Ryan Lee, Chief Analyst at Bitget Research. A 25-basis point cut signals moderate economic concerns and could lead to a gradual rise in crypto prices as investors seek higher returns outside traditional markets. On the other hand, a 50-basis point cut suggests deeper economic worries and could trigger significant capital inflows into cryptocurrencies, particularly Bitcoin, resulting in a stronger market rally but also heightened volatility.
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. In the long term, Lee predicts that either rate cut would reinforce expectations of continued Federal Reserve easing, supporting demand for cryptocurrencies. Overall, the recent inflows into Bitcoin ETFs and potential impacts of a Federal Reserve rate cut indicate the dynamic nature of the digital asset market and the various factors that can influence its movements.
