Following a period of uncertainty, Bitcoin (BTC) exchange-traded funds (ETFs) are experiencing a resurgence in popularity.
Despite Bitcoin’s historically bearish trends in September, both the cryptocurrency and its associated ETFs are defying expectations with a reversal in their performance.
Bitcoin ETFs: An Overview
Based on the latest data available as of September 26, total investments in Bitcoin ETFs have reached an impressive $365.7 million.
The most prominent contributors to this surge include ARKB by Ark with $113.8 million, IBT by Blackrock with $93.4 million, FBTC by Fidelity with $74 million, and BITB by Bitwise with $50.4 million.
Additionally, HODL by VanEck, BTCO by Invesco, and EZBC by Franklin also made notable contributions, attracting inflows of $22.1 million, $6.5 million, and $5.7 million, respectively.
While two smaller ETFs witnessed more modest investments below $5 million, the overall increase demonstrates renewed investor confidence in Bitcoin ETFs.
Notably, on September 25, BlackRock, the largest asset manager globally, experienced a significant surge of $184.4 million in investments for its Bitcoin spot ETF, marking the highest single-day inflow for any fund in that month.
Factors at Play
This upswing coincides with escalating speculation in the market, possibly influenced by developments in Asia.
Recent reports indicated a rally in Chinese stocks following news of the Chinese government’s plans to inject up to ¥1 trillion ($142 billion) into major state banks to stimulate an economy facing recent challenges.
Earlier that week, the People’s Bank of China (PBOC) implemented easing measures by reducing the reserve requirement ratio for mainland banks by 50 basis points and lowering the seven-day reverse repo rate by 20 basis points to 1.5%.
These initiatives have seemingly bolstered market optimism, potentially contributing to the increased investments in global markets, including Bitcoin ETFs.
Commenting on this development, CryptoQuant’s Founder and CEO, Ki Young Ju, remarked that the United States is strengthening its position in Bitcoin holdings, with a rising ratio compared to other countries driven by the demand for spot ETFs.
Assessing Price Movements
Meanwhile, Bitcoin’s price resilience remains noteworthy.
After encountering challenges breaching the $60,000 mark, the cryptocurrency surged to $65,642, marking a 2.89% gain within 24 hours.
As the month nears its end, Bitcoin has displayed a robust bullish trend, registering a significant monthly increase of 10.98%, indicating sustained upward momentum in the market.