Bitcoin ETF Attract Fresh Capital As Crypto Flows Rotate

American Bitcoin ETFs attracted $101.15 million on September 2nd. This rebound comes after an outflow of $236.5 million the previous day. Ethereum and XRP ETFs ended positive streaks that had captured $1.62 billion and $170 million respectively. At the same time, Solana products also closed the session in the red. These movements reveal a temporary rotation of capital towards Bitcoin rather than a general withdrawal by institutional investors.

BlackRock Leads the Rebound of Bitcoin ETFs

Following their largest single-day outflow since July 31st, Bitcoin ETFs returned to positive flows. However, the $101.15 million captured on September 2nd only made up 43% of the $236.5 million withdrawn the previous day.

BlackRock played a key role in this turnaround. Indeed, its IBIT ETF attracted $115.45 million, an amount exceeding the net flow of the entire category. Outflows of $56.21 million recorded by Grayscale’s GBTC reduced the overall result.

Four distinct movements emerged from this session :

• Bitcoin ETFs attracted $101.15 million ;
• Ethereum ETFs lost $48.08 million ;
• XRP ETFs suffered $7.2 million in outflows ;
• Solana ETFs recorded $6.13 million in outflows.

This difference highlights that investors favored the most liquid crypto product. However, it does not imply a sustained outflow from altcoins, since the negative amounts remain small compared to the inflows accumulated in previous weeks.

Bitcoin ETFs attracted $3.52 billion in August, their best monthly result this year. Thus, these assets amounted to about $97.22 billion, while the cumulative inflows since January 2024 reached $54.7 billion.

Ethereum Interrupts a $1.62 Billion Streak

As for Ethereum ETFs, they came off from twelve consecutive sessions of inflows. This streak added $1.62 billion to the various products before the outflow of $48.08 million observed on September 2nd.

BlackRock recorded opposite movements between its two funds. The ETHA ETF had a $53.4 million loss, while its ETHB product, which combines staking, attracted $52.9 million. Fidelity recorded $26.2 million in outflows and Grayscale’s ETHE suffered a loss of $23.5 million.

This daily outflow represents only about 3% of the capital collected during the previous twelve sessions. It thus constitutes a pause in the momentum but not yet an institutional turnaround around Ether.

XRP ETFs Lose $7.2 Million

Products related to XRP ended a sequence of eleven positive sessions. This had generated nearly $170 million in net inflows and brought the cumulative total since their launch to $1.68 billion.

The $7.2 million withdrawal was almost entirely concentrated in Bitwise’s fund. As for products such as Franklin Templeton, Canary Capital, 21Shares and Grayscale, they attracted no movements.

This outflow corresponds to only 4.2% of the inflows accumulated during the positive streak. Like Ethereum, a single negative session is thus insufficient to establish a lasting loss of interest. A succession of withdrawals would be necessary to confirm a trend change.

The Turnaround Lasts Only One Session for Bitcoin and Ethereum

Published statistics consolidate this caution. On September 3rd, Bitcoin ETFs recorded an additional $730.8 million. BlackRock contributed $454 million, while Fidelity and Ark Invest attracted $74.4 million and $137.7 million respectively, according to Farside Investors.

Ethereum ETFs also returned to inflows in the next session. They captured $141.4 million, including $72.1 million for BlackRock’s ETHA and $65.1 million for Fidelity’s FETH. Products linked to Solana also regained a positive balance of $6.4 million.

However, the monetary environment remains uncertain. The probability of a rate hike in the United States dropped from 63.2% to nearly 50.4% following comments from Christopher Waller. He stated: “if progress towards our 2% goal continues, I could support keeping rates”.

Flows in the coming sessions will help distinguish between two scenarios. Continued inflows would confirm the return of institutional demand. New outflows would rather indicate that investors remain hesitant ahead of the Fed’s September 16 decision.