Despite looming economic uncertainties, Bitcoin spot exchange-traded funds (ETFs) experienced a total net inflow of $39.425 million on August 21, indicating continued investor interest in the cryptocurrency. This positive trend coincided with Bitcoin’s price surge above the psychologically significant $61,000 mark, reaching $61,200 at the time of writing, a 3.0% increase.
Leading the charge were Grayscale’s mini ETF BTC and Fidelity’s FBTC, which saw inflows of $14.2002 million and $10.6872 million respectively. However, Grayscale’s flagship GBTC experienced an outflow of $9.8225 million, revealing a mixed sentiment among institutional investors, according to data from SoSo Value.
In contrast, Ethereum spot ETFs faced a total net outflow of $17.9688 million on the same day. Grayscale’s ETHE bore the brunt of this outflow, losing $31.1431 million, while Fidelity’s FETH and Grayscale’s mini ETF ETH saw inflows of $7.9286 million and $4.2422 million respectively. Despite the fund outflows, Ethereum’s price rose 2.4% to $2,640, suggesting a bullish retail sentiment.
The easing of concerns about a market sell-off, following the July FOMC minutes revealing some policymakers’ openness to rate cuts, contributed to the positive sentiment surrounding Bitcoin. This dovish stance, aiming to balance inflation and employment goals, lifted risk assets like Bitcoin, with strong buying activity observed on Coinbase Inc. COIN, indicating robust U.S. onshore demand. Historically, this has been a positive sign for short-term trends.
QCP Capital highlighted that attention now shifts to Fed Chair Powell’s Jackson Hole speech tomorrow, expecting further signals about potential rate cuts. The upcoming Benzinga Future of Digital Assets event on November 19 will provide valuable insights into how these macroeconomic factors influence digital asset investments.
