Bitcoin and Ethereum exchange-traded funds (ETFs) saw significant inflows in the week ending September 27. This comes as discussions about a crypto market recovery continue.
September has a reputation for being tough on Bitcoin. Historically, it’s been the worst month for the cryptocurrency. But many are hopeful for better results as we move into October.
On Friday alone, investors purchased 7,526 Bitcoin (BTC) and 22,310 Ethereum (ETH). This led to net inflows of $494.4 million for Bitcoin ETFs and $58.7 million for Ethereum ETFs.
According to Spotonchain, a tool for on-chain insights, these inflows pushed total weekly flows to levels we haven’t seen in weeks. Bitcoin ETFs recorded total positive flows of $1.11 billion, the highest since July 19.
Meanwhile, Ethereum ETFs saw $84.6 million in inflows between Monday and Friday, marking the largest weekly inflow since August 9.
Data from Farside Investors backs this up. It shows BlackRock’s IBIT ETF led the daily inflows, except for Monday when it brought in $11.5 million. Fidelity’s FBTC, on the other hand, recorded $24.9 million in positive flows.
Since launching in the U.S. market in January 2024, spot Bitcoin ETFs have attracted a lot of attention from institutional investors. They allow for direct portfolio inclusion of Bitcoin, making it easier to invest without the hassle of buying and securely storing the cryptocurrency.
As reported by BeInCrypto, over 1,000 institutional investors have jumped on board in just two filing periods. This shows a strong positive response to Bitcoin ETFs.
However, the Ethereum ETF market is facing challenges. All issuers are struggling as the financial instrument hasn’t performed well. Still, achieving positive inflows in both markets is tough. Investors are betting on a recovery, with Bitcoin holding strong above $65,500.
Bitcoin's price strength is closely linked to broader economic indicators. These suggest a rise in liquidity, which often benefits Bitcoin due to its sensitivity to such changes. For instance, China is considering fiscal aid for its citizens amid economic struggles. Similarly, the U.S. Federal Reserve has recently cut interest rates, a move that typically supports riskier assets.
Economists, including macro researcher Julien Bittel, have commented on the rising liquidity. He said, “Liquidity is on the rise again. Bitcoin is extremely sensitive to changes in liquidity conditions. It has the potential to move explosively as fresh liquidity flows into the system. A major liquidity wave is on the horizon, and when it hits, Bitcoin looks primed for a strong push higher in Q4.”
Additionally, the Global Money Index (GMI) shows an increase in liquidity. This index measures the volume of money circulating among consumers and banks. A rise in the GMI usually means more funds are available for spending, which could lead to more Bitcoin purchases.