Bitcoin ETF Inflows Top $553M as BTC-USD Trades Near $115K, Fed Policy Fuels Surge

Bitcoin ETF Inflows Surge Past $553M, Reinforcing Institutional Appetite

The spotlight in crypto markets is firmly on Bitcoin (BTC-USD) ETFs, which attracted $553 million in net inflows in a single day, marking the fourth consecutive session of positive institutional demand. Over the past four trading days, total inflows have swelled to $1.7 billion, reversing the weakness seen in August when outflows totaled $751 million. At the center of this resurgence is BlackRock’s iShares Bitcoin Trust (IBIT), which pulled in $366.2 million on its own. Fidelity’s FBTC absorbed $134.7 million, while Bitwise’s BITB saw $40.4 million, offsetting Grayscale’s GBTC, which recorded $23.5 million in withdrawals.

Trading activity has intensified in parallel with these flows, with ETF turnover reaching $2.93 billion in a single session. Assets under management across Bitcoin ETFs now stand at $152.3 billion, equal to 6.6% of Bitcoin’s $2.3 trillion total market capitalization. The direct effect has been reflected in prices: Bitcoin traded 1.04% higher at $115,455, briefly touching $117,000, leaving the token within 7% of its all-time peak at $124,128.

Federal Reserve Policy Shift Pushes Liquidity Toward BTC-USD

A key catalyst behind this capital shift has been the Federal Reserve’s 25 basis-point rate cut, which brought the benchmark rate down to 4.25%. This was the first reduction since 2023 and was interpreted as a “hawkish cut” — cautious on further easing but signaling policy flexibility. The move sparked an institutional rotation, with crypto products pulling in $746 million in just two days after the decision, underscoring Bitcoin’s role as a macro hedge in a liquidity-driven market.

The comparison with August’s ETF performance highlights the sharp turnaround. That month marked the third-worst stretch for Bitcoin ETFs since inception. Today, the tables have turned: ETF buyers are returning aggressively, confirming that institutions see BTC as a frontrunner in this policy-driven environment.

Ethereum ETFs Hold Ground While BTC Leads Flows

Although Bitcoin dominated ETF inflows, Ethereum (ETH-USD) products demonstrated resilience. BlackRock’s ETHA absorbed $144.3 million in new inflows, countering withdrawals from seven other issuers, including Fidelity, Grayscale, and VanEck. Net inflows settled at $47.7 million, keeping total Ethereum ETF assets at $29.6 billion.

Year-to-date, Ethereum funds have raised $12.6 billion, underscoring their importance in institutional portfolios despite the dominance of Bitcoin ETFs, which hold $57.7 billion in net inflows. The divergence in flows between BTC and ETH illustrates how investors are diversifying between store-of-value narratives and utility-driven blockchains.

Spot ETF Market Expands Beyond Bitcoin and Ethereum

The surge in Bitcoin ETF demand coincides with a broader expansion in crypto exchange-traded products. The SEC’s approval of fast-track listing rules for Nasdaq, Cboe BZX, and NYSE Arca has accelerated the rollout of new vehicles. Among the most notable debuts was the spot XRP ETF (XRPR), which recorded $24 million in its first trading hours, while the Dogecoin ETF (DOJE) saw $12 million in volume on day one.

BlackRock’s dominance remains clear, but the competitive landscape is widening. New filings for Avalanche, Sui, and Bonk ETFs are awaiting SEC review, bringing the number of pending applications to more than 92 products, with October deadlines looming. This regulatory acceleration suggests the crypto ETF market is entering a phase of rapid product diversification.

BTC-USD Technical Picture Strengthens as Inflows Accelerate

The weight of ETF inflows has pushed Bitcoin’s technical setup closer to a breakout. After retesting $117,000, BTC trades with strong support around $112,000–$113,000, while resistance stands at $118,500–$120,000. Breaching those levels could open the door to a retest of the $124,128 all-time high, with ETF-driven demand likely to provide the catalyst.

Meanwhile, the decline in short-Bitcoin products, which lost $3.5 million in outflows, reducing assets under management to a multiyear low of $83 million, signals that bearish bets are collapsing. Institutions are increasingly aligning with the long side of the market, strengthening Bitcoin’s structural momentum.

Institutional Momentum Points to Potential BTC Rally

The CME FedWatch Tool currently assigns a 92.5% probability of another 25 basis-point rate cut at the next Federal Reserve meeting. If confirmed, additional liquidity could drive further ETF inflows and provide Bitcoin with the firepower to not only reclaim but surpass its prior highs.

Analyst consensus is building toward aggressive targets, with ranges between $150,000 and $180,000 being floated if ETF inflows sustain their pace. At the current level of $115,455, that would imply upside potential of 30%–55%, reflecting one of the strongest institutional-backed setups in Bitcoin’s history.

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