Key facts
- Bitcoin ETFs have seen inflows for six consecutive days.
- Over $2.8 billion has been invested in Bitcoin ETFs since September 17.
- Monday saw nearly $1 billion in ETF inflows, the highest since October 6.
- Bitcoin's price reached $87,330 on Monday.
- The average Bitcoin ETF holder is now in profit, with the cost basis above $81,722.
Bitcoin exchange-traded funds (ETFs) have experienced a significant surge in investor interest, with inflows recorded for six consecutive days. These funds, managed by major financial institutions including BlackRock, Fidelity, and Morgan Stanley, have collectively attracted over $2.8 billion in new investments since September 17, according to data from Farside Investors.
Monday marked a particularly strong day, with nearly $1 billion invested in ETF shares, the highest single-day inflow since October 6, when the price of Bitcoin reached an all-time high of $126,080. While Bitcoin's price has since moderated to around $83,975, it has seen a nearly 4% increase over the past week.
Bloomberg ETF analyst James Seyffart highlighted that the average Bitcoin ETF holder is now profitable for the first time since January, with the estimated cost basis surpassing $81,722 per coin. This renewed interest follows the U.S. Department of the Treasury's August announcement to double its liquidity-support buyback operations, which initially pushed down Treasury yields and weakened the dollar, benefiting Bitcoin.
Despite recent interest rate hikes by the Federal Reserve and the blocking of the Clarity Act, a cryptocurrency legislation, Bitcoin has shown resilience. CryptoQuant noted that Bitcoin has crossed its 365-day moving average, a technical signal that some interpret as the end of a bear market. The current market sentiment is also influenced by a resurgent 'debasement trade,' where investors seek assets to hedge against currency devaluation, benefiting from a weaker dollar.