Bitcoin ETFs log best day since March as investors eye Fed rate cuts

Bitcoin ETFs log best day since March as investors eye Fed rate cuts
MarketsSnapshot
Bitcoin ETFs have been massively popular among investors since their launch in January 2024. Source: Shutterstock. Credit: Shutterstock / Sadi-Santos
  • Central banks in Europe and Canada just slashed rates.
  • Investors pouring into Bitcoin ETFs are betting on rate cuts in the US, says CoinShares head of research.

Investors are pouring back into markets — Bitcoin included — as central bank policies ignite a wave of enthusiasm for riskier assets.

The European Central Bank became the latest to cut rates today after Canada cut yesterday.

Now, market watchers expecting the Fed to follow suit.

Neil Wilson, chief analyst at Markets.com, said that economic data this week has been weaker than expected and sent the odds of a rate cut in September to 70%.

That euphoria bled into crypto markets.

On Tuesday, CoinShares found that US spot Bitcoin exchange-traded funds saw the largest one-day investment since March 12.

“It is becoming evident that the US economy is getting weaker, this has ramped up expectations for an interest rate cut to be earlier than expected,” James Butterfill, head of research at CoinShares, told DL News.

US ETF flows since Bitcoin ETFs hit the market. Source: CoinShares.

According to CoinShares data, Fidelity’s Bitcoin ETF saw the most inflows this week, posting $456 million in investment.

Join the community to get our latest stories and updates

Investors bought $274 million in BlackRock’s iShares Bitcoin Trust and $149 million in the Ark 21Shares Bitcoin ETF.

Crypto market movers:

  • Bitcoin is up 0.5% over the past 24 hours to $71,266.
  • Ethereum is up 1% to $3,800.

What we are reading:

Liam Kelly is a Berlin-based DL News’ correspondent. Contact him at liam@dlnews.com.