U.S. spot Bitcoin exchange-traded funds (ETFs) have recently witnessed robust inflows, with two consecutive days recording totals exceeding $300 million, culminating in an impressive $633.3 million across both sessions. This surge marks the strongest two-day performance for Bitcoin ETFs since early August, amid what has been a challenging period characterized by significant outflows.
On Tuesday, Fidelity’s FBTC led the way with inflows of $132.7 million, while BlackRock’s IBIT topped the charts on Wednesday with a remarkable $289.8 million. Cumulatively, BlackRock’s IBIT has amassed $362.7 million in inflows over the two days, with Fidelity’s FBTC contributing $142.5 million. This contrasts sharply with late August, a time when nearly $650 million exited Bitcoin ETFs in just two trading sessions.
Analysts remain cautious, interpreting the recent inflows as “concentrated dip-buying” rather than a definitive trend reversal. Dean Chen, an analyst at Bitunix, expressed that while the inflows have provided short-term support to market sentiment, a substantial and sustained flow will be necessary to confirm a lasting change. Chen pointed to “market-making arbitrage mechanisms” that have led to amplified inflows during price pullbacks and noted that institutional investors appear to be “scaling in during the correction” to lower their average cost basis.
The capital movement shifting back into Bitcoin also suggests investors reallocating funds from Ethereum amid ongoing uncertainty surrounding potential rate cuts. Illia Otychenko, lead analyst at CEX.IO, highlighted that, although Ethereum ETFs had outperformed Bitcoin in August, trends have reversed since August 28, showing an increase in capital rotation favoring Bitcoin.
Furthermore, Maria Carola, CEO of StealthEx, observed institutions and investors gravitating toward Bitcoin as a long-term hedge in light of concerns regarding fiat debasement. She pointed out the market’s preference for stability and store-of-value narratives over growth-oriented ones.
Currently, Bitcoin is trading around $110,800, reflecting a slight decrease of 0.4% in the last day and a nearly 11% drop from its recent all-time high of $124,545. Options traders are positioning themselves bullishly for the upcoming September 26 expiry, with open interest accumulating at strike prices of $120,000, $130,000, and $140,000.
Looking ahead, Dean Chen cautioned that confirming a market reversal will require several days, if not weeks, of sustained inflows to offset the broader outflow trend observed in August. This volatility coincides with increased macroeconomic uncertainty, notably sparked by tensions in U.S.-India trade relations. In a recent statement, former President Trump criticized these trade ties as a “totally one-sided disaster,” alongside the imposition of significant tariffs that could exacerbate inflation expectations, thereby enhancing Bitcoin’s appeal as a hedge against economic instability.
