As interest in spot Bitcoin ETFs grows, institutional investors are gearing up for a potential Bitcoin rally in the fourth quarter of the year. With global rate cuts providing a significant boost, Bitcoin’s price has surpassed $65,000 for the first time in nearly two months.
Spot Bitcoin ETF Inflows Hit New Highs
On September 26, inflows into spot Bitcoin ETFs soared to $365 million, marking the highest single-day inflows in September. This also represents six consecutive days of rising inflows, indicating renewed institutional interest in Bitcoin. The Ark Invest BTC ETF (ARKB) led the way with $113 million in inflows, followed by BlackRock’s IBIT with $93.4 million.
BlackRock’s continuous accumulation has boosted its Bitcoin holdings to 359,606 BTC, making it one of the largest holders in the market. Other ETFs also saw strong inflows, with FBTC receiving $74 million and BITB attracting $50 million. Grayscale’s GBTC experienced just $7.7 million in outflows, further underscoring the shift in institutional sentiment. Altogether, spot Bitcoin ETFs accumulated 5,602 BTC in a single day according to Farside DATA.
US Regains Dominance in Bitcoin Holdings
According to crypto analyst Ki Young Ju, the United States is regaining dominance in Bitcoin holdings, driven by strong inflows into spot ETFs. With higher trading volumes, the ratio of US-held BTC compared to other countries has surged, reflecting a growing trend of institutional adoption.
Institutions Brace for Q4 Bitcoin Price Surge
With central banks like the People’s Bank of China (PBoC) implementing rate cuts, liquidity is pouring into the market. Chinese investors are increasingly turning to Bitcoin as a safe haven amidst economic uncertainty. In a recent statement, QCP Capital expressed confidence in more easing from the PBoC, predicting a global liquidity boost as the Federal Reserve joins the rate-cutting cycle.
This influx of liquidity could potentially spark a “volatility supercycle.” Notably, former BitMEX CEO Arthur Hayes remains bullish on Bitcoin, stating it offers a sound solution in today’s digital economy to counterbalance the excesses of the financial elite.
