Bitcoin spot exchange-traded funds (ETFs) experienced a significant surge in popularity on Wednesday, drawing in a remarkable $757 million in net inflows—the highest daily figure since July. This surge in inflows coincided with an overall positive trend for major cryptocurrencies, which saw gains as traders geared up for an essential inflation report later that day.
As of the latest data, Bitcoin climbed 2.4% to reach $114,174, while Ethereum increased by 2.8% to $4,415.34. XRP also enjoyed a boost, rising by 1.7% to $3. Other notable cryptocurrencies included Solana, which rose 1.8% to $222.15, though it retraced some of its recent gains.
The impressive inflows into Bitcoin spot ETFs have been highlighted by figures from SoSoValue. Fidelity’s FBTC ETF led the pack with the largest single-day inflow of $299 million, followed by BlackRock’s IBIT ETF, which attracted $211 million. Ether also garnered renewed interest, particularly through its ETFs, which witnessed $171 million in inflows. BlackRock’s ETHA secured $74.5 million, while Fidelity’s FETH brought in $49.5 million.
Analysts are linking the recent bullish sentiment in the crypto markets to changes in macroeconomic indicators. BTC Markets analyst Rachael Lucas noted, “U.S. inflation cooled, job data revised sharply lower, and the Fed may pivot sooner than expected.” This comes after official U.S. reports indicated that the producer price index fell by 0.1% in August, a shift from previous months that suggested a weakening domestic demand following significant revisions to U.S. employment data.
Traders now anticipate that the U.S. Federal Reserve may implement a 25-basis-point interest rate cut in the forthcoming meeting, according to insights from CME Group’s FedWatch tool. As attention pivots to U.S. core inflation data, retail sentiment surrounding the iShares Bitcoin ETF remained bearish at the time of reporting.
Meanwhile, Solana has shown promising potential, hitting $225 for the first time in over seven months. Bitwise Chief Investment Officer Matt Hougan commented on Solana’s ability to process a higher volume of transactions compared to Ethereum at a lower cost, indicating that it could significantly benefit from the anticipated listing of multiple Solana ETFs by the end of the fourth quarter, along with increased corporate treasury purchases. Traders on Stocktwits expressed a bullish outlook, and Solana’s market capitalization has recently exceeded $121 billion.
In other developments, the cryptocurrency market is preparing for the debut trading of the first-ever Dogecoin ETF on Thursday, marking another significant milestone in the evolving landscape of digital currencies.
