Spot Bitcoin ETF Inflows Shoot to $365 Million, Institutions Ready for Q4 Rally?

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As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed numerous market cycles and trends. The recent surge in inflows into spot Bitcoin ETFs is undeniably an intriguing development that signals a growing institutional interest in Bitcoin, particularly ahead of the anticipated Q4 bull run.

Bitcoin ETF inflows are surging once more, fueled by the Bitcoin price reaching over $65,000 after a two-month absence. The global rate cuts have served as a significant boost, setting the stage for Bitcoin’s best September performance ever with approximately 10% monthly growth. Additionally, recent developments suggest that institutional interest in Bitcoin is resurging, potentially signaling a strong Q4 bull run.

Spot Bitcoin ETF Inflows Surge

On Thursday, September 26th, the daily investments into Bitcoin Spot ETFs reached an all-time high of $365 million for that month. Additionally, this increase marks the sixth straight day of investments in these ETF offerings.

As a crypto investor, I’m thrilled to share that the Ark Invest Bitcoin ETF (ARKB) took the lead with an impressive $113 million in investments flowing in, while BlackRock’s IBIT wasn’t far behind with a substantial $93.4 million influx. It’s fascinating to see BlackRock steadily increasing its Bitcoin holdings, now boasting 359,606 BTC, which places them among the top-tier holders in this dynamic market.

Yesterday, as a researcher observing the crypto market, I noticed that while FBTC experienced inflows amounting to $74 million, BITB saw inflows at $50 million. Remarkably, outflows have decreased substantially for Grayscale’s GBTC, with just $7.7 million leaving the fund on Thursday, according to data from Farside Investors. In summary, spot Bitcoin ETFs collectively withdrew approximately 5,602 BTC from the market yesterday.

Inflows into Bitcoin Spot ETFs have been rising significantly due to high trading activities. Yesterday, BlackRock’s IBIT dominated with a trading volume of $1.52 billion, and the ProShares Bitcoin Strategy ETF (FBTC) recorded a trading volume of $355 million.

Crypto expert Ki Young Ju commented that the United States is once again taking the lead in Bitcoin ownership, mainly due to increased investments in spot Exchange-Traded Funds (ETFs). This shift has resulted in a significant increase in the proportion of U.S. Bitcoin holdings relative to other countries.

The United States is seeing an increase in its control over Bitcoin ownership, with the comparison to other nations growing, primarily due to the surge in demand for spot Bitcoin Exchange-Traded Funds (ETFs). Only recognized entities are considered in this analysis.

— Ki Young Ju (@ki_young_ju) September 26, 2024

Institutions Preparing for Q4 Bitcoin Rally

Beyond just Bitcoin ETFs, institutions are now gearing up for a powerful surge in Bitcoin prices during Q4, as global interest rate reductions take effect. In response to the new influx of liquidity and lowered rates by the People’s Bank of China, Chinese investors are purchasing Bitcoins as a means of protection amid their struggling economic landscape. As for broader market trends, QCP Capital expressed their insights:

It’s our view that the People’s Bank of China will implement further monetary easing, a stance they have clearly communicated. Additionally, the Federal Reserve has joined other global central banks in reducing interest rates, leaving all major banks (excluding the Bank of Japan) prepared to increase liquidity within the market.

However, this liquidity flush can trigger a ‘volatility supercycle’ with Arhurs Hayes betting on a Bitcoin price rally ahead. BTC “is the most technically sound way in this modern digital world to balance the profligacy of the ruling elite,” he wrote.

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2024-09-27 08:46