US spot Bitcoin and Ethereum ETFs drew $1.20 billion in net inflows during the week ending Sept. 4, with Bitcoin funds taking more than 80% of the total as investor demand stayed positive overall market-wide.
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According to data from Farside Investors, spot Bitcoin ETFs collected $986.7 million during the five trading sessions. The figure was about 6.7% higher than the $924.5 million recorded in the previous five sessions.
Bitcoin funds began the week with $216.7 million in net inflows on Aug. 31. They then posted $236.5 million in outflows on Sept. 1, before buying returned over the final three sessions.
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BlackRock Drives Strong Weekly Bitcoin ETF Inflows
The next three days produced inflows of $101.1 million, $730.8 million, and $174.6 million. Sept. 3 was the strongest session by a wide margin, contributing about 74% of the weekly total.
BlackRock’s spot Bitcoin products took in $454 million on Sept. 3. ARK Invest and 21Shares’ ARKB added $137.7 million, while Fidelity’s FBTC and Grayscale’s Bitcoin Mini Trust drew $74.4 million and $48.8 million.
BlackRock also led the full week with about $691.5 million in net inflows. ARKB followed with $137.7 million, and Fidelity’s fund recorded $94.8 million.
Bitwise’s BITB received $41.7 million during the period. VanEck’s HODL recorded about $33 million in net withdrawals, while Grayscale’s converted GBTC fund posted an $18.6 million inflow.
Cumulative net inflows for US spot Bitcoin ETFs reached about $55.69 billion. These crypto ETF inflows pushed the market’s cumulative total higher, according to Farside Investors.
Ethereum funds also ended the week with positive flows. Farside data shows that US spot Ethereum ETFs recorded $215.3 million in net inflows, but that result was about 73.6% lower than the $815.7 million recorded during the prior week.
How Strong Buying Pushed US Ethereum ETF Inflows to $215.3M
Ethereum products started with $87.6 million in inflows on Aug. 31. They added $8.6 million on Sept. 1, then recorded $48.2 million in outflows on Sept. 2.
Buying strengthened on Sept. 3, when Ethereum ETFs attracted $141.4 million. Another $25.9 million entered the products on Sept. 4, leaving the category with a positive weekly result.
The BlackRock ETHA made $136.4 million in weekly inflows, while its staked ETH product, the ETHB, contributed an additional $81.8 million, for a total of $218.2 million.
This total was just a little bit more than the net inflow for the whole category, because withdrawals from other Ethereum products left the total at $215.3 million.
The Fidelity FETH showed a net inflow of $4.7 million, having gained $65.1 million on September 3 and then lost $48.3 million in the following session.
Grayscale’s higher-fee ETHE posted a weekly outflow of $37 million, while its lower-cost Ethereum Mini Trust received $17.1 million in inflows.
Cumulative net inflows into US spot Ethereum ETFs reached about $13.19 billion by Sept. 4. Ethereum demand remained positive, even as its pace slowed sharply. Crypto ETF inflows remained positive across the category.
Why Crypto ETF Inflows Rose Despite Market Caution
The latest crypto ETF inflows came during a cautious period for traditional U.S. investment funds. According to LSEG Lipper data, cited by Reuters, showed $11.12 billion in withdrawals from U.S. equity funds during the week ending Sept. 2.
Large-cap funds made up $7.52 billion of the withdrawals. Meanwhile, money market funds pulled in $48.76 billion as investors moved toward those products.
Reuters linked the caution to higher bond yields, higher oil prices, and tensions in the Middle East. These factors affected risk assets in the beginning of the week before sentiments turned out positive on Sept. 3.
According to CNBC, Federal Reserve Governor Christopher Waller said that he would support holding rates steady if inflation kept easing. This comment was made when Bitcoin and Ethereum ETFs saw the highest inflow of the week.
These ETF categories saw about $872.2 million inflow on Sept. 3. In addition, Bitcoin moved above $81,000, while Ethereum recovered towards $2,500.
However, the price rise failed to persist until the next trading session. Despite the price movements, new flows came into crypto ETFs on Sept. 3.
How Inflation and Fed Policy Could Impact Crypto ETF Inflows
At the time of writing, Bitcoin is trading around $79,665, having declined by 1.83%. At the same time, Ethereum dropped by 2.61% and trades around $2,455.
It is evident that inflows of ETFs do not reduce the riskiness of the market within the short term. Movements in prices depend on changes in the outlook of the economy and the monetary policy of the US.
US labor data have become another important factor that investors must follow. The Bureau of Labor Statistics reported an increase of 162,000 nonfarm payroll jobs in August, while the unemployment rate was 4.1%.
The figures indicate a robust performance of the labor market. A strong economy may mean additional freedom for the Fed to keep high borrowing costs.
Now investors will be waiting for the publication of the CPI report on September 11. The Federal Reserve is also expected to make a policy decision on September 16.
Persistent inflation may negatively impact the cryptocurrency prices and ETF inflows in the coming periods. Softer inflation data could support expectations for stable or lower interest rates.
The weekly crypto ETF flows depicted continued buying in both of the two largest spot crypto ETFs. The crypto ETF inflows for the week were positive overall. The Bitcoin ETFs carried on gaining from last week, whereas Ethereum ETFs were positive despite the sharp slowdown.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
