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Bitcoin ETFs based in Uncle Sam’s country had a record week this week with inflows of more than $1.1 billion. These numbers demonstrate the increased confidence of institutional investors, but also the growing influence of Bitcoin-backed financial products in US portfolios.
Record week for US Bitcoin ETFs
In the week of September 23-27, 2024, US Bitcoin ETFs attracted more than $1.1 billion in investment, their best performance since mid-July. This number includes a spectacular inflow of $494.4 million on September 27, a record day that has not been equaled since June 4, 2024. Among the players that dominated this dynamic, BlackRock attracted $499 million through its iShares Bitcoin Trust, followed by ARK 21Shares with 289 .5 million and Fidelity with an inflow of $206.1 million.
These massive flows are partly explained by the Federal Reserve’s decision to cut interest rates on September 18, 2024, which gave the crypto market a boost. Bitcoin thus climbed 13.8% to reach $65,800, only 10.8% below its all-time high. This recovery, along with renewed interest from institutional investors, has largely contributed to this capital inflow.
Long-term prospects and consequences
In addition to these numbers, it is important to note that US Bitcoin ETFs have now accumulated $18.8 billion since their launch in January 2023. This number shows the gradual but significant adoption of cryptocurrency by active institutional investors as cryptocurrency products gain legitimacy. Notably, ether-based ETFs also had a record week with inflows of $85 million, their best performance since August 2024.
These results indicate a promising outlook for the fourth quarter. Historically, Bitcoin has often seen gains of more than 50% during this period in five of the last nine years. If this trend continues, Bitcoin ETFs could continue to attract new capital and play a key role in democratizing cryptocurrency investing. However, this increase in power remains conditional on future decisions by regulators and central banks, which closely monitor developments in financial markets.
The performance of Bitcoin ETFs in the United States is a strong indicator of growing interest in cryptocurrencies, especially in the context of flexible monetary policies. As the fourth quarter approaches, past trends and current flows point to a potentially fruitful period for Bitcoin. However, uncertainties related to regulation and global macroeconomic conditions may still affect this dynamic.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. Every day I try to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations and put into perspective the economic and social problems of this ongoing revolution.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.