Spot bitcoin exchange-traded funds in the U.S. reported $517.19 million in net inflows on Wednesday amid a notable rebound in the cryptocurrency market.
According to data from SoSoValue, eight out of 12 bitcoin ETFs recorded net inflows on the day, led by $284.7 million worth of inflows into BlackRock's IBIT. Ark & 21Shares' ARKB logged $77.7 million in inflows, and Fidelity's FBTC reported $62.4 million.
Total inflows into the bitcoin funds were the largest since May 4 — three months and 16 days ago.
Analysts concurred that the sizable net inflows resulted from positive news that drove up the crypto market after months of downturn.
Buyback expansion
Yesterday, bitcoin (BTC) climbed above $69,000 for the first time in two months while ether (ETH) reclaimed $2,000 amid a broader crypto market rally attributed to a Treasury buyback expansion and the Securities and Exchange Commission's latest crypto offering proposal.
"We're not surprised by the $517 million inflow into bitcoin ETFs on Wednesday – it's a natural reaction to the Department of Treasury's buyback announcement," Jeff Mei, COO of BTSE, told The Block. "When the Treasury signals it's stepping in to cap Treasury yields, the dollar softens, risk appetites return, and bitcoin and crypto benefit."
On Wednesday morning, the U.S. Treasury Department said that it will at least double the size of liquidity support buyback operations for longer-dated nominal coupon securities across the 10- to 30-year segment.
Earlier on Tuesday, the SEC proposed a rule that would create two tailored exemptions for certain crypto investment contracts: issuers could raise up to $5 million over four years or $75 million annually, subject to disclosure requirements.
No day traders
Rachael Lucas, crypto analyst at BTC Markets, said that expectations of improving liquidity have resulted in renewed institutional positioning, rather than "pure retail FOMO."
"After the heavy outflows seen in May-June and more choppy flows through parts of July and mid-August, a print of this size signals that larger allocators are once again treating current levels as constructive entry points or adding on strength," Lucas told The Block. "It is not opportunistic day-trading money; these are typically longer-horizon allocations from players who have the compliance frameworks and balance-sheet capacity to move size."
However, both Lucas and Mei said that inflows are unlikely to continue at this magnitude.
"A lot depends on whether the buybacks are a one-off move or an ongoing initiative — This depends on inflation and how the U.S.-Iran conflict will evolve," Mei said. "The catalysts we're watching for are next week's CPI data and any commentary from Bessent on whether this buyback strategy will be sustained over a longer period."
Hyperliquid to US
The crypto market is continuing its rally today, with bitcoin up 8.3% in the past 24 hours at $69,564, and ether up nearly 18% at $2,251. XRP and Solana both rose around 10%.
Hyperliquid's HYPE (HYPE) was among the day's top gainers, fueled by President Donald Trump's public comment that Commodity Futures Trading Commission Chair Michael Selig is working to bring the perpetuals-focused trading platform into the U.S. in a "fully compliant and legal fashion."
LIT (LIT), the native token of competing perp futures trading platform Lighter, added 23.5% in the past 24 hours to $2.84. The overall crypto market is up 8%.
"Overall, Wednesday's print is a constructive data point that institutional demand remains very much alive and capable of absorbing supply when the setup improves," Lucas said
Spot bitcoin ETFs report $517 million in net inflows, largest in 3.5 months Spot bitcoin exchange-traded funds in the U.S. reported $517.19 million in net inflows on Wednesday amid a notable rebound in the cryptocurrency market. According to data from SoSoValue, eight out of 12 bitcoin ETFs recorded net inflows on the day, led by $284.7 million worth of inflows into BlackRock's IBIT. Ark & 21Shares' ARKB logged $77.7 million in inflows, and Fidelity's FBTC reported $62.4 million. Total inflows into the bitcoin funds were the largest since May 4 — three months and 16 days ago. Analysts concurred that the sizable net inflows resulted from positive news that drove up the crypto market after months of downturn. Buyback expansion Yesterday, bitcoin (BTC) climbed above $69,000 for the first time in two months while ether (ETH) reclaimed $2,000 amid a broader crypto market rally attributed to a Treasury buyback expansion and the Securities and Exchange Commission's latest crypto offering proposal. "We're not surprised by the $517 million inflow into bitcoin ETFs on Wednesday – it's a natural reaction to the Department of Treasury's buyback announcement," Jeff Mei, COO of BTSE, told The Block. "When the Treasury signals it's stepping in to cap Treasury yields, the dollar softens, risk appetites return, and bitcoin and crypto benefit." On Wednesday morning, the U.S. Treasury Department said that it will at least double the size of liquidity support buyback operations for longer-dated nominal coupon securities across the 10- to 30-year segment. Earlier on Tuesday, the SEC proposed a rule that would create two tailored exemptions for certain crypto investment contracts: issuers could raise up to $5 million over four years or $75 million annually, subject to disclosure requirements. No day traders Rachael Lucas, crypto analyst at BTC Markets, said that expectations of improving liquidity have resulted in renewed institutional positioning, rather than "pure retail FOMO." "After the heavy outflows seen in May-June and more choppy flows through parts of July and mid-August, a print of this size signals that larger allocators are once again treating current levels as constructive entry points or adding on strength," Lucas told The Block. "It is not opportunistic day-trading money; these are typically longer-horizon allocations from players who have the compliance frameworks and balance-sheet capacity to move size." However, both Lucas and Mei said that inflows are unlikely to continue at this magnitude. "A lot depends on whether the buybacks are a one-off move or an ongoing initiative — This depends on inflation and how the U.S.-Iran conflict will evolve," Mei said. "The catalysts we're watching for are next week's CPI data and any commentary from Bessent on whether this buyback strategy will be sustained over a longer period." Hyperliquid to US The crypto market is continuing its rally today, with bitcoin up 8.3% in the past 24 hours at $69,564, and ether up nearly 18% at $2,251. XRP and Solana both rose around 10%. Hyperliquid's HYPE (HYPE) was among the day's top gainers, fueled by President Donald Trump's public comment that Commodity Futures Trading Commission Chair Michael Selig is working to bring the perpetuals-focused trading platform into the U.S. in a "fully compliant and legal fashion." LIT (LIT), the native token of competing perp futures trading platform Lighter, added 23.5% in the past 24 hours to $2.84. The overall crypto market is up 8%. "Overall, Wednesday's print is a constructive data point that institutional demand remains very much alive and capable of absorbing supply when the setup improves," Lucas said. Ref: https://paykalken.com #Bitcoin #BTC #BitcoinETF #Crypto #CryptoMarket #ETFInflows #BlackRock #IBIT #Institutional #CryptoNews