Key takeaways
- US Bitcoin Spot ETFs have raised 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 pool of spot Bitcoin ETFs on Thursday, bringing total net buying to more than $600 million so far this week, according to Farside Investors. data. The strong inflows came amid Bitcoin’s rise to $65,000, hitting a monthly high.
After losing on Wednesday, ARK Invest’s ARKB came back strong yesterday, leading the pack with approximately $114 million in new capital.
BlackRock’s IBIT extended its winning streak, posting around $93 million on Thursday, while Fidelity’s FBTC and Bitwise’s BITB collectively raised around $124 million.
Other gains were also seen in funds managed by VanEck, Invesco, Valkyrie and Franklin Templeton. WisdomTree’s BTCW was the only ETF with zero flows.
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 lowest outflow in the past two weeks.
The renewed interest in spot Bitcoin ETFs coincides with the recent rise in Bitcoin price.
Bitcoin surpassed the $65,000 level on Thursday after U.S. GDP growth rose to 3% and weekly jobless claims unexpectedly declined.
Positive economic indicators, added to the decision of the Federal Reserve recent interest rate cut and potential stimulus measures in Chinahave likely contributed to the Bitcoin price rally.
More rate cuts?
The Federal Reserve’s inflation gauge, the personal consumption expenditure (PCE) index, is scheduled to be released at 8:30 a.m. ET on Friday.
Analysts expect headline PCE to fall to 2.3% year-on-year in August, which would be the lowest level in four years. The core PCE is expected to increase by 2.7% annually.
Morningstar’s Preston Caldwell forecasts headline PCE rose 0.15% and core PCE rose 2.4%. If his predictions are correct, he anticipates the Federal Reserve will cut interest rates by 25 basis points in November and December.
A possible rate cut could have a positive impact on the price of Bitcoin. Lower interest rates make riskier assets like Bitcoin more attractive to investors, which could drive prices higher.
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