Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
Add preferred source
U.S. spot ether ETFs attracted $216.41 million on September 11, their strongest single-day inflow since late August, while bitcoin ETFs posted a fourth consecutive day of outflows at $13.29 million. BlackRock’s ETHA led ether inflows with $148.82 million. Bitcoin funds have now shed $462.73 million over the week, pushing their annual deficit toward $1 billion. The divergence comes as August CPI data showed core inflation at 2.4% annually but a hotter-than-expected 0.3% monthly rise, lifting the implied probability of a Federal Reserve rate hike at the September 16 meeting to 85%. ETH briefly topped $2,600, triggering $216 million in short liquidations, while BTC traded near $79,000 after finding support at $76,000.
Key Elements
Investor money is rotating toward ether as spot exchange-traded funds tracking the second-largest cryptocurrency pulled in $216.41 million on Thursday, September 11, while their bitcoin counterparts posted a fourth straight session of outflows. The divergence, captured in data compiled by SoSoValue, underscores shifting institutional appetite ahead of a critical Federal Reserve policy decision scheduled for September 16.
Bitcoin ETFs lost a relatively modest $13.29 million on the day, but the cumulative picture is less flattering. Over the course of the week, investors withdrew $462.73 million from the products, following a strong $986.9 million net inflow during the week ending September 4. The reversal has pushed bitcoin funds deeper into an annual deficit approaching $1 billion.
BlackRock’s iShares Bitcoin Trust (IBIT) bore the brunt of Thursday’s outflows with $19.23 million leaving the fund. Morgan Stanley’s MSBT bucked the trend, attracting $3.76 million, while VanEck’s HODL added $2.18 million. Daily trading volume across bitcoin ETFs reached $2.60 billion, and total net assets stood at $97.58 billion even as BTC hovered around $77,000.
Ether Funds Post Strongest Day Since Late August
The six U.S. spot ether ETFs registered their largest single-day inflow since August 27. BlackRock’s Ethereum Trust (ETHA) dominated the tally with $148.82 million in new capital, followed by Bitwise’s ETHW at $29.09 million, BlackRock’s ETHB at $18.32 million, and Fidelity’s FETH at $11.40 million.
Combined trading volume across ether ETF products exceeded $2.56 billion, nearly matching bitcoin’s daily figure. Net assets in ether funds climbed to $16.31 billion. The products have now posted roughly $197 million in positive flows for the week, marking a fourth consecutive week of net inflows.
The surge in ether fund demand coincided with a sharp rally in the underlying asset. ETH broke above $2,600 during the session, touching $2,665 before settling near $2,510. The move triggered approximately $216 million in forced liquidations of short positions over a 24-hour window The largest single liquidation occurred on Hyperliquid and was valued at nearly $20.3 million
Analyst Ash Crypto noted on X that ETH had broken out of a 21-day bullish ascending triangle pattern, writing: “If this level holds, we can see $2,800-$3,400 next.”
Inflation Data Complicates Fed Outlook
The fund flows came against a backdrop of mixed U.S. inflation data. The Bureau of Labor Statistics reported on September 11 that headline CPI rose 0.4% month-over-month and 3.4% year-over-year, in line with expectations. Core inflation, which excludes food and energy, decelerated to 2.4% annually — its lowest level since March 2021 — but the monthly core reading of 0.3% came in above the 0.2% consensus forecast.
The hotter-than-expected monthly core figure pushed the implied probability of a rate increase at the Fed’s September 16 meeting to 85%, up from 60% a week earlier, based on CME Group’s FedWatch Tool. Goldman Sachs revised its own forecast to anticipate a 25 basis point hike at that meeting.
Energy costs drove much of the monthly increase, with gasoline prices advancing 3.9% in August and accounting for more than one-third of the overall rise. The comprehensive energy index climbed 2.1%, influenced by escalating oil prices tied to geopolitical tensions between the U.S. and Iran.
U.S. 30-year Treasury yields surged to levels not seen since June 2004 before retreating to 5.309%. Trading firm QCP Capital warned that elevated yields create headwinds for bitcoin, describing current conditions as “the worst mix for Bitcoin” — a competitive 5% risk-free return without accompanying economic expansion.
Technical Signals and Whale Activity
Bitcoin’s daily MACD indicator displayed a bullish convergence with the histogram transitioning to positive territory at 13.86, though both MACD lines remained below the zero threshold. The Relative Strength Index registered 54.98, placing BTC in neutral territory. The cryptocurrency briefly pushed past $79,000 following the CPI release, gaining 2.89% over 24 hours to trade at $79,387.86, after finding support near $76,000 earlier in the session.
Market analyst Ted Pillows cautioned that the day’s price appreciation was not supported by robust spot market demand. He observed that a decisive weekly settlement above $80,000 accompanied by substantial ETF inflows could propel BTC toward $85,000, though current dynamics suggest a pullback is more probable.
On the ether side, analyst Ali Martinez highlighted that approximately 10 million ETH had changed hands within the $2,700–$2,800 price band, creating a significant supply wall. Transactions exceeding $1 million in value increased by 14% on September 11, signaling heightened whale participation. Martinez wrote on X: “This is the key range that whales must break to allow Ethereum to rise to $3,000.”
ETH continues trading above its 20-, 50-, 100-, and 200-day exponential moving averages, with the Relative Strength Index hovering around 63–64. Primary resistance zones sit at $2,626 and $2,786, while support levels appear at $2,431, with additional cushions near $2,235 and $2,182. A sustained daily close above $2,516 could clear the way toward the $2,700–$2,800 supply concentration, with the 161.8% Fibonacci extension target positioned at $3,100.
Other crypto ETFs remained relatively quiet. Hyperliquid products saw $8.18 million in outflows, Solana funds lost $278,840, and XRP ETFs recorded no net flows for the day.
What Comes Next
The coming sessions will test whether the ether inflow trend has staying power. ETH funds had recorded $24 million in outflows as recently as September 9, and a single day above $200 million does not by itself confirm a sustainable rotation. Several consecutive sessions of comparable magnitude would be needed to establish a genuine trend.
For bitcoin, a fifth consecutive day of outflows would reinforce the current weakness narrative. Much depends on the tone the Federal Reserve adopts at its September 16 meeting. Fed policymaker Christopher Waller had previously indicated a preference for maintaining current rates if inflation demonstrated “some signs of disinflation” — a threshold the latest data may or may not satisfy.
Goldman Sachs analyst Jonathan Shugar suggested that risk-oriented assets might still appreciate despite a potential rate increase, which could help explain the sustained institutional appetite for ether products. The divergent fund flows suggest investors are not abandoning crypto exposure wholesale but are reallocating within the asset class.
The next several trading sessions will reveal whether ether’s momentum can carry it through the $2,700–$2,800 resistance zone and whether bitcoin can reclaim the $80,000 level that analysts identify as the key threshold for renewed bullish conviction.
Once added, BigGo Finance appears first in Google Search Top Stories, so you get the broadest, most up-to-the-minute, and most comprehensive global financial news first.
Source: finance.biggo.com