If recent exchange-traded fund activity is any indication, the Bitcoin bulls have officially returned.
Farside Investors data reveals that U.S. bitcoin exchange-traded funds pulled in $999 million in fresh capital on Monday.
This marks the highest single-day influx since October 6, a session that saw funds attract more than $1.2 billion while the premier cryptocurrency climbed to a record high of $126,080.
Bitcoin was recently trading at $86,552, following a peak of $87,330 earlier on Monday. Over the preceding week, the digital asset recorded a price surge of close to 13%.
Approved by the SEC in 2024, U.S. Bitcoin ETFs have unlocked new avenues of exposure for investors. Wall Street institutions can now seamlessly purchase shares in funds overseen by major players such as BlackRock, Fidelity, Morgan Stanley, and others.
Significant capital inflows into these funds frequently trigger major price movements, mirroring the market action observed on Monday.
Bloomberg ETF analyst James Seyffart noted on Monday that the typical ETF investor is currently profitable, with the estimated ETF cost basis climbing past $81,72 for the initial time since January.
BlackRock’s iShares Bitcoin Trust captured the largest share of Monday’s inflows at $381.4 million. Meanwhile, the ARK 21Shares Bitcoin ETF hauled in $289.1 million, and Fidelity’s Wise Origin Bitcoin Fund added $238.8 million.
This resurgence of investor enthusiasm for Bitcoin follows a cooling period in the artificial intelligence stock rally, alongside an August announcement from the U.S. Department of the Treasury outlining plans to at least double its liquidity-support buyback operations.
According to analysts, this policy decision drove down 30-year Treasury yields, softened the dollar, and elevated the appeal of alternative assets like bitcoin, sparking the cryptocurrency’s strongest rally in years.
A report published Tuesday by digital asset market intelligence firm CryptoQuant indicated that the leading cryptocurrency moved above its 365-day moving average, signaling an exit from the previous bear market.
Frequently Asked Questions
How much did U.S. Bitcoin ETFs raise on Monday?
U.S. bitcoin exchange-traded funds brought in $999 million in new investment on Monday.
Which ETF received the most capital on Monday?
BlackRock’s iShares Bitcoin Trust captured the largest portion of Monday’s investment at $381.4 million.
What caused the renewed interest in Bitcoin?
Investor interest returned as the AI stock rally cooled and the U.S. Treasury announced plans to expand its liquidity-support buyback operations.
What is the current status of the bear market?
According to CryptoQuant, Bitcoin recently crossed above its 365-day moving average, signaling that the asset has exited the bear market.
