Bitcoin ETFs hit $1.11B inflows while Ethereum reaches $84.6M

Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) ETFs saw a surge in inflows during the week ending September 27, signaling growing optimism about the cryptocurrency market's recovery.

According to reports, Bitcoin ETFs recorded $1.11 billion in inflows, the largest weekly figure since July 19.

Ethereum ETFs followed with $84.6 million, marking their most significant weekly inflow since August.

The spike in inflows aligns with broader market expectations of a stronger performance for Bitcoin in the fourth quarter of 2024.

Despite September historically being Bitcoin’s worst-performing month, investors are eyeing October for potential gains.

Data from Spotonchain showed that Bitcoin and Ethereum ETF purchases reached 7,526 BTC and 22,310 ETH on Friday alone, contributing to a combined inflow of $494.4 million for Bitcoin and $58.7 million for Ethereum.

Farside Investors noted that BlackRock's IBIT ETF led the inflows throughout the week, except for Monday when Fidelity’s FBTC outpaced it with $24.9 million against BlackRock’s $11.5 million.

The positive sentiment reflects a broader institutional interest in spot Bitcoin ETFs, which offer an easier entry into Bitcoin investment by eliminating direct purchase and storage hurdles.

According to market data, over 1,000 institutional investors signed on within two 13F filing periods.

Julien Bittel, a macro researcher, highlighted the potential for Bitcoin’s explosive growth, stating that "Bitcoin – being extremely sensitive to changes in liquidity conditions – has the potential to move explosively as fresh liquidity flows into the system."

As liquidity rises, driven by economic developments such as the US Federal Reserve cutting interest rates and China considering fiscal aid, Bitcoin is expected to benefit.

The Global Money Index also supports this outlook, indicating a rise in liquidity that could fuel further Bitcoin purchases.

At the time of reporting, the Bitcoin price was $65,684.76, while the Ethereum price was $2,651.87.