Bitcoin ETFs Surge as Analyst Predicts Institutional Interest Will Break September’s Bearish Trend
Spot Bitcoin exchange-traded funds (ETFs) have broken a two-week streak of outflows, experiencing significant inflows totaling over $403.8 million in just one week. Analysts are optimistic that the increased institutional interest in Bitcoin this year will help the cryptocurrency defy the typically bearish trend seen in September.
According to data from SoSoValue, spot Bitcoin ETFs saw a notable inflow of $263.07 million on September 13, marking the largest single-day influx since July 22. Notably, funds from Fidelity, ARK Invest, and 21Shares accounted for more than half of the total inflows on that day.
Specifically, Fidelity’s FBTC recorded a five-day streak of inflows, attracting $102.1 million, while ARK Invest and 21Shares’ ARKB received $99.3 million. Other funds that saw inflows included Bitwise BITB ($43.1 million), Franklin Templeton EZBC ($5.2 million), Grayscale’s GBTC ($6.7 million), VanEck’s HODL ($5.1 million), and Valkyrie’s BRRR’s ($1.7 million). On the other hand, BlackRock’s IBIT, Invesco’s BTCO, WisdomTree’s BTCW, and Grayscale’s Bitcoin mini trust did not see any flows during this period.
The resurgence in Bitcoin ETF inflows coincided with Bitcoin’s recovery to levels around $60,000, with the cryptocurrency experiencing intraday highs and lows of $60,655 and $57,668, respectively. Currently, Bitcoin is trading approximately 11% higher than its low of $53,860 on September 8.
Historically, September has been a challenging month for Bitcoin, with an average monthly loss of 4.69% over the past 11 years, as per data from CoinGlass. However, analyst Rajat Soni believes that the growing institutional interest, fueled by the approval of spot Bitcoin ETFs, could potentially reverse this trend.
Soni highlighted that Bitcoin has been consolidating above the $50,000 threshold for the past six months, suggesting a more stable market compared to previous cycles dominated by retail investors prone to emotional trading and increased volatility. The presence of institutional investors this time around may provide a stronger foundation, potentially preventing Bitcoin from dropping below critical levels.
Institutional interest has also extended to Bitcoin mining stocks, with rising demand observed by analysts at H.C. Wainwright. The approval of spot Bitcoin ETFs and the increasing interest in AI-driven power infrastructure have contributed to heightened investor enthusiasm for Bitcoin mining equities.
Industry experts have set bullish price targets for Bitcoin, with predictions suggesting the cryptocurrency could reach as high as $300,000 to $600,000 in the current market cycle. As of the latest updates, Bitcoin’s price hovers above $59,650, reflecting a 9.7% increase over the past week.
