Bitcoin ETFs Draw $517M in Single Day, Largest Inflow Since May

Bitcoin ETF News

US spot Bitcoin (BTC) exchange-traded funds recorded $517.19 million in net inflows on Aug. 19, the largest single-day total since May 4, according to data from SoSoValue, as two federal policy announcements drove a broad cryptocurrency market rally.

Eight of the 12 tracked Bitcoin ETFs posted positive flows on the day. BlackRock’s IBIT led with $284.7 million in inflows, followed by Ark and 21Shares‘ ARKB at $77.7 million, and Fidelity’s FBTC at $62.4 million.

Treasury Buyback and SEC Proposal Cited as Catalysts

On Aug. 19, the US Treasury Department said it would at least double the size of its liquidity support buyback operations for longer-dated nominal coupon securities in the 10- to 30-year segment. On Aug. 18, the Securities and Exchange Commission proposed a rule that would create two exemptions for certain crypto investment contracts, including a startup exemption for up to $5 million over four years and a fundraising exemption for up to $75 million annually, subject to disclosure requirements.

Jeff Mei, COO of crypto exchange BTSE, attributed the inflows directly to the Treasury announcement. “When the Treasury signals it’s stepping in to cap Treasury yields, the dollar softens, risk appetites return, and bitcoin and crypto benefit,” Mei told The Block.

Rachael Lucas, a crypto analyst at BTC Markets, said the composition of the flows points to institutional allocators rather than short-term retail activity. “After the heavy outflows seen in May-June and more choppy flows through parts of July and mid-August, a print of this size signals that larger allocators are once again treating current levels as constructive entry points,” Lucas told The Block. She said the capital comes from participants with compliance infrastructure and balance-sheet capacity to move at scale.

Related Article: Citi To Add Bitcoin Custody for Institutional Clients Under New Custody+ Platform

Analysts Caution Against Expecting a Repeat

Both Lucas and Mei said inflows at this level are unlikely to continue. Mei said the outlook depends on whether the Treasury’s buyback program proves to be a sustained initiative, and named next week’s CPI data and any public commentary from Treasury Secretary Scott Bessent as key indicators. He also cited the evolution of the US-Iran conflict as a variable affecting the broader picture.

BTC was trading at $69,564 on Aug. 20, up 8.3% in 24 hours, having climbed above $69,000 on Aug. 19 for the first time in two months. Ethereum (ETH) stood at $2,251, up nearly 18%. XRP and Solana (SOL) each gained around 10%. Hyperliquid’s HYPE token rose 27.48% after Trump said CFTC Chair Michael Selig is working to bring the perpetuals trading platform into the US in a “fully compliant and legal fashion.” Lighter’s native token, LIT, added 23.5% to $2.84 over the same period.

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