Bitcoin exchange-traded funds (ETFs) have managed to break out of a two-week outflow spree, posting weekly inflows of more than $403.8 million. Analysts expect the surge in institutional interest this year to help bitcoin challenge the bearish narrative that prevailed in September.
according to Soso ValueBitcoin ETFs saw $263.07 million in inflows on September 13, the largest daily inflow since July 22, with Fidelity, ARK Invest and 21Shares funds accounting for more than half of the day’s moves.
- Fidelity’s FBTC continued its 5-day inflow streak, bringing in $102.1 million.
- ARK Invest and 21Shares’ ARKB, $99.3 million.
- Bitwise BITB, $43.1 million.
- Franklin Templeton EZBC, $5.2 million.
- Grayscale’s GBTC has turned positive for the first time since July 19, raising $6.7 million.
- HODL to VanEck, $5.1 million.
- BRRR’s Valkyrie scored $1.7 million on its first day of streaming after four days of no streaming.
- BlackRock’s IBIT, Invesco’s BTCO, WisdomTree’s BTCW, and Grayscale’s Bitcoin mini fund did not see any inflows.
Bitcoin ETFs managed to break out of a two-week outflow wave as Bitcoin (BTC) recovered to $60K levels with an intraday high and low of $60,655 and $57,668, respectively.
At the time of publishing, the crypto asset was trading 11% higher than its weekly low of $53,860 on September 8.
This time is different
Historically, September has been a negative month for Bitcoin. CoinGlass Data Shows an average monthly loss of 4.69% over the past 11 years.
But analyst Rajat Soni Suggests Growing institutional interest, driven by the approval of Bitcoin ETFs this cycle, could help turn things around.
Sony noted that Bitcoin has been consolidating above the $50,000 level for the past six months, noting that the last time the leading cryptocurrency held above that level was in 2021. However, at that time, the market was primarily driven by retail investors who are often influenced by emotions, which meant increased volatility.
This time around, Sonny believes that the presence of institutional investors could provide a more stable foundation, making the likelihood of Bitcoin falling below that critical level less likely. It’s a sentiment echoed by several industry experts interviewed by crypto.news earlier this month.
“This time is different. Institutional investors are here, and they are ready to buy whatever retail investors want to sell,” Sonny wrote.
However, Sonny cautioned against selling, adding that investors could find themselves paying a much higher price to buy back later, as institutions are ready to snap up any coins that hit the market.
Institutional interest appears to have extended to Bitcoin mining stocks as well. As analysts at HC Wainwright note, the approval of spot Bitcoin ETFs, coupled with the growing demand for AI-powered energy infrastructure, has led to increased investor interest in Bitcoin mining stocks.
This optimism is also supported by bullish price targets from industry leaders, with Michael van de Poppe, suggestion Bitcoin could reach $300,000 to $600,000 in this market cycle.
At the time of writing, Bitcoin is hovering above $59,650, up 9.7% over the past week.