US-listed spot Bitcoin exchange-traded funds (ETFs) experienced a strong return to inflows on Monday, driven predominantly by BlackRock's iShares Bitcoin Trust ETF (IBIT). Bitcoin ETFs recorded $216.7 million in net inflows on Monday, recovering from $201.8 million in withdrawals on Friday, which had ended a nine-session inflow streak totaling over $3 billion. BlackRock's IBIT alone accounted for $205.9 million of these inflows, representing approximately 95% of the day's total. Fidelity's Wise Origin Bitcoin Fund (FBTC) and Bitwise Bitcoin ETF (BITB) also saw positive inflows of $6.9 million and $4.3 million, respectively. VanEck's Bitcoin ETF (HODL) was the sole fund to experience outflows, with $13.4 million. Additionally, spot Ether ETFs continued their strong performance, attracting $87.7 million, marking their eleventh consecutive day of inflows. BlackRock's iShares Ethereum Trust ETF (ETHA) led this category with $59.9 million. The price of Bitcoin was trading near $78,700, up about 1.5% over 24 hours.
The recent surge in Bitcoin's price, climbing from below $63,000 to a high near $81,400, has been significantly supported by institutional demand through spot Bitcoin ETFs. Last week, US-listed spot Bitcoin funds recorded their strongest weekly inflow in 10 months, attracting a net of $1.92 billion. The funds also saw their largest single-day inflow in over three months on August 20, pulling in $606.3 million. Over the previous two weeks, combined inflows reached approximately $2.8 billion. Despite the August 28 withdrawal of $201.9 million, the ETFs recorded $924.5 million in weekly net inflows. Analysts from Bitfinex noted that institutional custodial holdings linked to exchanges and ETF platforms increased by about 59,100 BTC, helping to absorb selling from larger Bitcoin holders.
The ability of Bitcoin to maintain its recent gains, particularly around the $80,000 to $83,000 resistance zone, is increasingly dependent on sustained institutional buying through ETFs, especially as the risk of a US Federal Reserve rate hike in September looms. Analysts, including Jeff Ko of CoinEx, view the $80,000-$83,000 area as a significant supply zone requiring continued spot buying to extend Bitcoin's advance. The previous rally was fueled by factors like lower Treasury yields and a weaker dollar, alongside short-covering activity, but these mechanical boosts have largely faded. Market-implied expectations for a September rate increase have risen to roughly 57% following Federal Reserve Chair Kevin Warsh’s comments at Jackson Hole. Analysts are monitoring the $77,100 level as important near-term support.
The performance of individual Bitcoin ETFs is also under scrutiny. While BlackRock's IBIT showed strong inflows, other funds like ARKB and BITB contributed significantly to the August 28 withdrawals. BTSE Chief Operating Officer Jeff Mei emphasized that Bitcoin ETF demand needs to be strong across multiple products, not just concentrated in a single fund, for sustained market health. The interplay of economic data, Treasury yields, the dollar's strength, and consistent Bitcoin ETF demand will be crucial in determining if Bitcoin can hold above $77,000 and make another attempt at the $80,000-$83,000 resistance zone. Weakening ETF flows combined with higher inflation or increased rate hike expectations could put renewed pressure on the cryptocurrency.
