Spot Bitcoin ETF Inflows Shoot to $365 Million, Institutions Ready for Q4 Rally?

Inflows into the spot Bitcoin ETF have skyrocketed once again with the Bitcoin price crossing more than $65,000 for the first time in nearly two months. The global rate cuts have provided a strong catalyst as BTC prepares for the best September on record with 10% monthly gains. Also, the current development shows that institutional interest in Bitcoin is back ahead of the expected Q4 bull run.

Spot Bitcoin ETF Inflows Surge

On Thursday, September 26, the total inflows into spot Bitcoin ETFs surged to $365 million, the highest single-day inflows in September. Furthermore, it also marks six consecutive days of inflows into the ETF products.

The Ark Invest BTC ETF (ARKB) led the pack with $113 million in inflows followed by BlackRock’s IBIT with $93.4 million in inflows. With its continuous purchases, BlackRock Bitcoin holdings have surged to 359,606 BTC making it one of the largest holders.

On the other hand, FBTC saw inflows at $74 million while BITB saw inflows at $50 million. The outflows have also dropped significantly with Grayscale’s GBTC seeing only $7.7 million outflow on Thursday, per the Farside Investors data. All in all, the spot Bitcoin ETFs scooped a total of 5,602 BTC from the market yesterday.

The recent inflows into spot BTC ETFs come on the backdrop of strong trading volumes. Yesterday, BlackRock’s IBIT led the pack with $1.52 billion in trading volume, followed by the ProShares Bitcoin Strategy ETF (FBTC) at $355 million.

Popular crypto analyst Ki Young Ju stated that the US is regaining dominance in BTC holdings driven by strong flows into spot ETF. Thus the ratio of US BTC holdings in comparison to other countries has also surged.

The 🇺🇸U.S. is regaining dominance in #Bitcoin holdings. Its ratio compared to other countries is rising, driven by spot ETF demand. Only known entities are included. pic.twitter.com/a9XOb5134E

— Ki Young Ju (@ki_young_ju) September 26, 2024

Institutions Preparing for Q4 Bitcoin Rally

Apart from the Bitcoin ETFs, institutions are now preparing for a strong Bitcoin rally in Q4 amid the global rate cuts. Amid the fresh infusion of liquidity and rate cuts by PBoC, Chinese investors are buying Bitcoins to seek shelter amid their fragile economic conditions. Commenting on the macro development, QCP Capital noted:

“We believe more easing is coming from the PBoC, and they have communicated as much. Combined with the Fed joining the global cutting cycle, all major central banks (except BoJ) are now ready to inject more liquidity into the market”.

However, this liquidity flush can trigger a ‘volatility supercycle’ with Arhurs Hayes betting on a Bitcoin price rally ahead. BTC “is the most technically sound way in this modern digital world to balance the profligacy of the ruling elite,” he wrote.