U.Today – In a major development, ETFs have made a substantial purchase, acquiring $250 million worth of Bitcoin in the last day. This marks the largest single-day purchase by Bitcoin ETFs in over a month, according to blockchain analytics provider Arkham Intelligence.
“Bitcoin ETFs are buying. Bitcoin ETFs bought $250M worth of BTC yesterday, the most in over a month,” Arkham Intelligence wrote in a recent tweet.
Bitcoin ETFs, investment vehicles that allow investors to gain exposure to Bitcoin without directly owning the cryptocurrency, have been steadily increasing their holdings. This surge, as Arkham Intelligence highlights, has seen Bitcoin ETFs grab $250 million worth of BTC in a single day. To put this into perspective, this level of buying marks the highest in over a month, sparking interest and speculation as to what is driving the rally.
Several factors could be driving the recent Bitcoin ETF buying spree, though the exact reason is unknown. The crypto market is bracing for the impact of the Federal Reserve meeting on Tuesday and Wednesday, when rates are expected to be cut for the first time since the start of a rate hike cycle in March 2022. A rate cut this week could be a game-changer for risk assets like cryptocurrencies.
Bitcoin reverses weekly outflows
According to CoinShares’ latest report, digital asset investment products experienced a reversal, with inflows reaching $436 million after a period of outflows totaling $1.2 billion.
The surge in capital inflows towards the end of the week could be attributed to a major shift in market expectations about a likely 50 basis point interest rate cut on September 18, following comments from former New York Federal Reserve Chairman Bill Dudley. Bitcoin was the main focus, with $436 million in inflows following a $1.18 billion outflow in 10 days.
The next few weeks will be crucial in determining whether this surge in ETF buying is a temporary trend or the start of a broader accumulation period that could push Bitcoin prices higher.
At the time of writing, BTC was up 4.82% over the past 24 hours to $60,082 and 6% on the week.
This article was originally published on U.Today
