Confidence appears to be returning to Bitcoin investment products, with institutional money flowing back into U.S. spot ETFs at a pace not seen in weeks.
Over the past four trading sessions, the funds have attracted a combined $1.7 billion, reversing the slump that plagued August.
Thursday alone brought in more than half a billion dollars. Data from SoSoValue shows BlackRock’s iShares Bitcoin Trust leading the charge with $366.2 million, while Fidelity’s fund pulled in $134.7 million and Bitwise added $40.4 million. Several other issuers, including VanEck, Invesco, and Franklin Templeton, also reported gains.
The renewed activity follows a difficult August, when Bitcoin ETFs shed $751 million in capital — their third-worst month since launching in January. Ethereum ETFs, by contrast, enjoyed their second-best month on record, with nearly $3.9 billion in inflows, fueling the idea that investors were rotating out of BTC and into ETH. That pattern now appears to be reversing: ether funds started September in the red before recovering slightly with $113 million of inflows on Thursday.
Vincent Liu, CIO of Kronos Research, sees the shift as a broader macro play. With the Federal Reserve widely expected to cut rates next week, he says institutions are positioning ahead of looser monetary conditions. “ETF flows are signaling confidence,” he explained, adding that stronger liquidity could put Bitcoin on course to challenge its all-time highs if macro conditions remain stable.
Market prices reflected the renewed optimism going into Friday’s session. Bitcoin climbed above $115,000, gaining just over 1% in 24 hours, while ether advanced nearly 3% to $4,553. Broader crypto benchmarks also ticked higher, lifted by expectations of continued inflows.
The focus now shifts to the September 16-17 Federal Open Market Committee meeting. CME Group’s FedWatch tool puts the odds of a 25-basis-point cut at over 90%, with only a slim chance of a deeper 50-point move. For traders, the Fed’s tone could determine whether this burst of ETF demand marks the start of a longer trend — or just a temporary rotation.
