Bitcoin ETFs Witness Flood of Inflows, Providing Price Support
At Spot Bitcoin ETFs, a significant influx of investments was observed last week, reversing the negative trend seen in early September and bolstering the price of Bitcoin with a new layer of support. The net inflows exceeded $2.32 billion during the week, marking a substantial turnaround.
The reversal began on September 8, with ETFs achieving $364 million in net inflows, followed by a smaller influx of $23 million on September 9. The momentum accelerated mid-week, with $741 million on September 10, $553 million on September 11, and $642 million on September 12. This surge in investments was led by prominent players, including FBTC and Ark’s ARKB, with Blackrock’s allocations also playing a significant role.
Reversal of Fortunes
This reversal came after a challenging start to September, with ETFs experiencing repeated outflows, particularly on September 4, which saw $223 million in outflows, followed by $160 million on September 5. However, the tide turned, and the subsequent influx of investments has provided a much-needed boost to the Bitcoin price.
Bitcoin Price Stability
The Bitcoin price campaign has confirmed this shift, with BTC rising from around $112,000 on September 8 to just under $116,000 on September 13, representing a 3.5% increase over the week. Intraday fluctuations remained within a $2,000 range, reflecting resistance in the face of heavier trading volumes.
The magnitude of the purchases stood out compared to earlier weeks, with the $2.32 billion in net inflows in the past week being almost ten times the total net inflows of the first week of September. Notably, these inflows occurred without destabilizing volatility, demonstrating the market’s ability to efficiently absorb investments.
ETF Inflows and Price Stability
Data suggests that ETF inflows have a significant impact on price stability. At the end of August, the Spot ETF market recorded substantial outflows when Bitcoin dropped to $112,000. In early September, the BTC price found support in the inflows, which helped it recover and surpass $115,000.
As spot ETFs have established themselves as the primary channel for institutional exposure, their weekly direction has become an increasingly reliable signal for short-term market movements. If this trend continues, the inflows of the past week could set the tone for the second half of September, potentially providing Bitcoin with a foundation to test the $118,000 to $120,000 range.
For more information and insights, visit https://cryptoslate.com/insights/bitcoin-etfs-lock-2-3b-in-inflows-as-btc-steadies-above-115k/
