Key takeaways
- U.S. spot Bitcoin ETFs have brought in more than $600 million so far this week.
- ARK Invest’s ARKB led with $114 million in new capital on Thursday.
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U.S. investors poured about $365 million into the Bitcoin spot ETF group on Thursday, bringing total net purchases to more than $600 million so far this week, according to data from Farside Investors. These strong capital inflows came as Bitcoin surged to $65,000, hitting a monthly high.
After losing on Wednesday, ARK Invest’s ARKB was back strong yesterday, leading the pack with approximately $114 million in new capital.
BlackRock’s IBIT extended its winning streak, taking in about $93 million on Thursday, while Fidelity’s FBTC and Bitwise’s BITB collectively raked in about $124 million.
Other gains were also seen in funds managed by VanEck, Invesco, Valkyrie and Franklin Templeton. WisdomTree’s BTCW was the only zero-flow ETF.
Grayscale’s Bitcoin Mini Trust captured nearly $3 million on Thursday. In contrast, its high-cost product, the GBTC fund, lost around $7 million, the weakest outflow in the last two weeks.
The renewed interest in spot Bitcoin ETFs coincides with the recent rise in Bitcoin prices.
Bitcoin surpassed the $65,000 level on Thursday after US GDP growth reached 3% and weekly jobless claims unexpectedly declined.
Positive economic indicators, coupled with the recent Fed interest rate cut and potential stimulus measures in China, have likely contributed to the rise in Bitcoin prices.
More rate cuts?
The Fed’s inflation gauge, the Personal Consumption Expenditures (PCE) index, is scheduled to be released Friday at 8:30 a.m. ET.
Analysts expect headline PCE to fall to 2.3% year-on-year in August, which would be the lowest level in four years. Core PCE is expected to increase by 2.7% per year.
Morningstar’s Preston Caldwell forecasts headline PCE rose 0.15% and core PCE rose 2.4%. If his forecast is correct, he expects the Fed to cut interest rates by 25 basis points in November and December.
A possible drop in rates could have a positive impact on the price of Bitcoin. Lower interest rates make riskier assets like Bitcoin more attractive to investors, which could push prices higher.
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