Institutional Demand Is Back: Bitcoin and Ethereum ETF Inflows Reached 10

Institutional Demand Is Back: Bitcoin and Ethereum ETF Inflows Reached 10-Month High

The funds tracking both assets recorded a perfect week of net inflows only.
ByJordan Lyanchev

In a sudden but very impactful change in investor behavior, the spot exchange-traded funds tracking the largest cryptocurrency attracted almost $2 billion in fresh funds in the past five business days alone.

The Ethereum counterparts also set a multi-month peak, gaining nearly $700 million within the same timeframe.

Spot BTC ETFs Attract $1.92B

The week started on the right foot, with almost $300 million in net inflows on Monday and another $189.30 million on Tuesday. However, investors picked up the pace on Wednesday after the US Treasury Department announced it would double the maximum size of liquidity-support buybacks for longer-dated government debt, raising them from $2 billion to at least $4 billion per operation.

This had a dramatic effect on risk-on assets like crypto and investor appetite. The spot Bitcoin ETF net inflows skyrocketed to $517 million on that day and then exceeded $606 million on Thursday, the best single-day performance since May 1. Another $307.45 million entered the funds on Friday, ending the perfect green-only week, in which the financial vehicles attracted a total of $1.92 billion.

The total inflows have rocketed from under $51.8 billion at the end of the previous week to over $53.7 billion on August 21.

This made last week the best in terms of net inflows since the one that ended on October 10, when investors poured in $2.71 billion. Recall that this was the trend-changer, as BTC experienced one of its worst crashes at the time, resulting in over $19 billion in liquidations within 24 hours.

Naturally, these ETF inflows were among the reasons behind the underlying asset’s spectacular price revival in the past week. It traded below $65,000 before the Treasury Department’s announcement but skyrocketed by over $15,000 to nearly $80,000 by Friday.

Source: cryptopotato.com