Bitcoin (BTC) exchange-traded funds (ETFs) in the United States reported inflows of more than $186 million and accumulated four consecutive days with incoming capital flows, the best streak so far in September.
The good performance of financial instruments based on the digital asset occurs in view of the possibility that the United States Federal Reserve (Fed) will announce this September 18 a cut in the interest rate after 4 years.
Within this framework, Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC) received inflows of more than $56 million. Meanwhile, Bitwise’s Bitwise Bitcoin ETF (BITB) and ARK 21Shares Bitcoin ETF (ARKB) from Ark Invest and 21Share received inflows of $45 million and $42 million, respectively.
During the last day, none of the 12 ETF of bitcoin reported money outflowsnot even Grayscale’s Grayscale Bitcoin Trust (GBTC), whose commission fee is one of the highest.
Since their launch on the market, these financial instruments have attracted more than $17 billion.
Money inflows and outflows into bitcoin ETFs since their launch. Source: SosoValue.
In this regard, Matt Hougan, the Investment Director of the Bitwise company, explained that The $500 million that entered BTC spot funds over the past 4 days “are perfectly in line with the market’s rethinking of the likelihood of a 50 basis point rate cut today.” He added:
“The lesson? Bitcoin is establishing itself as a go-to tool for investors looking to take risks.”
Matt Hougan, CEO of Bitwise.
The good performance of the ETFs helped the digital currency created by Satoshi Nakamoto continue in the $60,000 zone. Its current price is $59,900.
Bitcoin price so far in 2024. Source: TradingView.
Money inflows into asset ETFs have a direct impact on the price of BTC due to its operation.
The issuer companies must acquire and hold bitcoin in their treasuries to back the shares. Otherwise, if the ETFs have outflows of money, they will have to get rid of that surplus of the digital currency.
The Fed would announce a rate cut
As CriptoNoticias already reported, Fed head Jerome Powell, will provide a speech on September 18 in which he could announce a cut in interest rates after 4 years.
Financial markets are closely following developments which will take place starting at 2 p.m. Washington time.
It is that a cutout at the rate of 0.25 points could whet investors’ appetite for assets considered to be of risk such as stocks, BTC and other cryptocurrencies.
However, if the rate remains between 5.25 and 5.50%, they will seek refuge in safer instruments such as Treasury bonds, which generate lower returns but are not exposed to market fluctuations.
For their part, some analysts They argue that an abrupt cut, greater than 0.5 points, could be a sign of weakening in the economy of the world’s largest financial power.
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.