- Bitcoin funds saw $634 million of inflows in the beginning of September.
- Total inflows over the past week hit $1.1 billion.
- Investors await Friday’s jobs data for Fed rate cut signal.
Investors are pouring back into US spot Bitcoin exchange-traded funds ahead of a pivotal Federal Reserve meeting that could reshape the macro backdrop for risk assets.
Bitcoin ETFs attracted $633 million of inflows in the first two trading days of September, with $1.1 billion entering over the past week, according to tracking platform SoSoValue. That contrasts with $1.2 billion in outflows a week prior.
The momentum is part of a broader trend, Joel Kruger, market strategist at LMAX Group, said in a statement shared with DL News. “Bitcoin has extended its recent recovery, finding support amid rising stablecoin liquidity and renewed inflows.”
Kruger added that September is usually a period of consolidation, “but this year consolidation may be shallower, as ETF adoption, institutional allocations, and regulatory support provide a stronger fundamental backdrop heading into Q4.”
All eyes are now on Friday’s US August jobs report, which could prove decisive for the key Fed’s meeting on interest rates scheduled for September 16 and 17.
Softer-than-expected data on Friday could push expectations toward a 0.50% cut, analysts say.
Geoffrey Kendrick, global head of digital assets research at UK bank Standard Chartered, said last week that a 0.25% cut in September is guaranteed, but that surprisingly weak payroll data may embolden the Fed to do a 0.50% cut. “That would help digital assets find a base.”
The flows also underscore how Bitcoin ETFs have become embedded in the portfolios of wealth managers and institutional allocators, rather than remaining a retail product.
“Advisers are by far the biggest holders now,” James Seyffart, ETF research analyst at Bloomberg Intelligence, noted in August. “Pretty much every category we track increased their Bitcoin ETF exposure over 2Q.”
Markets are pricing a 97.6% chance of a 0.25% cut to interest rates, CME FedWatch data shows.
Crypto market movers
- Bitcoin is down 0.3% over the past 24 hours to trade at $110,724.
- Ethereum is up 1.1% to trade at $4,398.
What we’re reading
- Trump boys’ American Bitcoin mining company hits a rocky start — DL News
- Ethereum Foundation Plans $43 Million in ETH Sale via CEXes — Unchained
- Alt Season or exit season?— Milk Road
- Ethena fee switch milestone a ‘top priority’ as USDe hits $12bn — DL News
- Trump-backed WLFI valued at $7.6bn — but only 24% of tokens are tradable — DL News
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email at lance@dlnews.com.
