Bitcoin exchange-traded funds continue their momentum, marking six straight days of net inflows from investors.
Data from Farside Investors shows that these funds — overseen by major financial institutions including BlackRock, Fidelity, and Morgan Stanley — have pulled in upwards of $2.8 billion in fresh capital starting from September 17.
Monday alone accounted for nearly $1 billion in share purchases, representing the highest daily intake since October 6. On that previous date, the funds brought in more than $1.2 billion while the primary cryptocurrency climbed to a record peak of $126,080.
Even so, Friday’s Bitcoin pricing shows only a modest increase, hovering around $83,975 after touching $87,330 earlier on Monday. The coin has nonetheless gained close to 4% over the course of the past week.
Although the leading cryptocurrency retreated from its earlier weekly highs, Bloomberg ETF analyst James Seyffart noted that average ETF participants are profitable once again. This recovery follows the estimated ETF cost basis climbing above $81,722 for the initial time since January.
Investor enthusiasm for Bitcoin picked up after the U.S. Department of the Treasury announced in August plans to at least double its liquidity-support buyback operations.
That policy shift drove 30-year Treasury yields down and softened the dollar, triggering a Bitcoin price rally. U.S. Treasury yields have since climbed back up following the August announcement.
Bitcoin maintained its upward trajectory last week despite the Federal Reserve raising interest rates and lawmakers stalling the passage of the Clarity Act, a major piece of crypto legislation.
Several analysts suggest the premier cryptocurrency has officially entered a bull market. CryptoQuant, a crypto market data provider, reported this week that the asset crossed past its 365-day moving average, indicating the conclusion of its bear market cycle.
Having reached an all-time high of $126,080 in October of the previous year, Bitcoin began pulling back later that month following a historic liquidation event that closed over $19 billion in leveraged positions. Nevertheless, the debasement trade — where market participants invest in assets as a hedge against currency devaluation — has regained momentum, helping Bitcoin thrive as the dollar weakens.
Frequently Asked Questions
How much have Bitcoin ETFs brought in recently?
Bitcoin ETFs have accumulated over $2.8 billion in new investments over a six-day winning streak starting from September 17.
What is the estimated ETF cost basis?
The estimated ETF cost basis has risen above $81,722 per coin for the first time since January, putting the average ETF buyer back into profitable territory.
When did Bitcoin reach its all-time high?
Bitcoin hit a record price of $126,080 in October of last year.
What market indicator suggests Bitcoin is out of a bear market?
Crypto market data firm CryptoQuant noted that Bitcoin crossed above its 365-day moving average, signaling the end of the bear market.
