Bitcoin ETFs take in nearly $3bn over six-day streak
US bitcoin exchange-traded funds have drawn more than $2.8bn in six straight days of inflows, with Monday alone bringing in almost $1bn, Bitcoin Magazine reports.
Key points
- Bitcoin ETFs received over $2.8bn in new investment across six consecutive days from September 17, per Farside Investors data.
- Monday saw nearly $1bn of inflows, the largest daily total since October 6, when funds took in over $1.2bn.
- Bitcoin traded near $83,975 on Friday after touching $87,330 on Monday, a gain of almost 4% over seven days.
- Bloomberg analyst James Seyffart said the average ETF buyer is back in profit, with an estimated cost basis of $81,722.
- The funds are managed by firms including BlackRock, Fidelity and Morgan Stanley.
Bitcoin exchange-traded funds have recorded six consecutive days of inflows, drawing more than $2.8bn from investors since September 17, according to Farside Investors data cited by Bitcoin Magazine. The funds are run by asset managers including BlackRock, Fidelity and Morgan Stanley.
Monday was the strongest single session of the run, with investors buying close to $1bn in ETF shares. That was the biggest daily total since October 6, when the funds attracted more than $1.2bn and bitcoin set an all-time high of $126,080.
Bitcoin's price reaction has been more modest than the fund flows. The coin recently traded at nearly $83,975 on Friday, having reached as high as $87,330 on Monday, and it is up almost 4% over the past seven days.
Six days of ETF buying
Bloomberg ETF analyst James Seyffart noted that the average ETF buyer is now in profit. He said the estimated ETF cost basis rose above $81,722 per coin for the first time since January, putting holders back above water.
Bitcoin Magazine reports that interest revived after the US Department of the Treasury said in August it would at least double the size of its liquidity-support buyback operations. The move pushed 30-year Treasury yields lower and weakened the dollar, and bitcoin rallied as a result, though Treasury yields have since climbed again.
The gains came despite two potential headwinds. Lawmakers blocked landmark crypto legislation, the Clarity Act, and the Federal Reserve raised interest rates, yet bitcoin continued to advance last week.
Price lags the inflows
Some analysts now describe the market as a bull run. CryptoQuant wrote this week that bitcoin crossed above its 365-day moving average, a signal the asset has left its bear market behind. Bitcoin peaked at $126,080 last October before sinking later that month, when the largest liquidation event in crypto history closed over $19bn in bets. The debasement trade, in which investors buy assets to hedge against currency weakness, has returned as the dollar has softened.