U.S.-listed spot Bitcoin ETFs experienced a surge in trading activity, with inflows exceeding $252 million on Friday, marking their highest level since July 23. This spike in interest came after the Jackson Hole symposium, where favorable comments from Federal Reserve Chair Jerome Powell boosted risk assets, including Bitcoin.
Record Trading Volumes for Bitcoin ETFs
The combined trading volume for the eleven Bitcoin ETFs soared to $3.12 billion, reaching levels not seen since July 19, according to data from SoSoValue. BlackRock’s IBIT ETF led the pack, with trading activity hitting $1.2 billion and net inflows of $83 million. Fidelity’s FBTC followed closely, attracting $64 million in inflows, while Bitwise’s BITB crossed the $2 billion AUM milestone with $42 million in new funds. On the other hand, Grayscale’s GBTC was the only product to show net outflows, losing $35 million. However, Grayscale’s mini Bitcoin fund, BTC, remained in the positive, with $50 million in inflows.
Fed Signals and Market Reactions
At the Jackson Hole symposium, Jerome Powell indicated that the Federal Reserve is likely to ease monetary policy soon. His comments, suggesting that “the direction of travel is clear,” hinted at potential rate cuts based on incoming economic data and evolving risks. Following Powell’s speech, Bitcoin rallied above $64,000, reflecting the market’s optimism.
Impact of Monetary Policy on Crypto
Crypto traders are now widely anticipating the Fed’s first rate cut at the upcoming policy meeting on September 17. Typically, tighter monetary policies reduce risk appetite in financial markets. However, lower interest rates make assets like Bitcoin more attractive, as investors can access cheaper capital, driving up demand.
