Bitcoin ETFs rebound, analyst sees institutional interest breaking September’s bearish trend

Spot Bitcoin ETFs, or exchange-traded funds, broke a two-week streak of outflows with over $403.8 million in weekly inflows. Analysts expect increased institutional interest this year to help Bitcoin challenge the bearish September narrative.

According to SoSoValue, spot Bitcoin ETFs generated $263.07 million on Sept. 13, the largest single-day inflow since July 22. Funds from Fidelity, ARK Invest and 21Shares accounted for more than half of the daily movement.

Fidelity’s FBTC extended its five-day inflow streak, bringing in $102.1 million. ARK Invest and 21Shares’ ARKB added $99.3 million. Bitwise’s BITB added $43.1 million. Franklin Templeton’s EZBC added $5.2 million. Grayscale’s GBTC turned positive for the first time since July 19, gaining $6.7 million. VanEck’s HODL added $5.1 million. Valkyrie’s BRRR added $1.7 million, marking its first day of inflows after four days of no inflows. BlackRock’s IBIT, Invesco’s BTCO, WisdomTree’s BTCW, and Grayscale’s Bitcoin mini-trust all saw zero inflows.

Bitcoin ETFs ended a two-week streak of gains, with Bitcoin (BTC) hitting $60,000 levels and a daily high and low of $60,655 and $57,668, respectively.

At press time, the crypto-asset was trading 11% higher from its weekly low of $53,860 on Sep. 8.

BTC 24-hour price chart – September 14 | Source: crypto.news This time it’s different

Historically, September has been a negative month for Bitcoin, with CoinGlass data showing an average monthly loss of 4.69% over the past 11 years.

However, analyst Rajat Soni suggests that increased institutional interest during this period, with the approval of spot Bitcoin ETFs, could help turn things around.

Soni noted that BTC has been consolidating above the $50,000 level over the past six months, noting that the flagship cryptocurrency last settled above this level in 2021. However, back then, the market was mostly driven by retail investors who were driven by emotions, leading to increased volatility.

This time around, Soni believes that the presence of institutional investors could provide a more stable base and reduce the likelihood of Bitcoin falling below this critical level. This sentiment was echoed by several industry experts interviewed by crypto.news earlier this month.

“This time it’s different. Institutional investors are here and ready to buy whatever retail investors want to sell,” Soni wrote.

However, Soni warned against selling, saying that investors could pay much higher prices to buy back later, while institutions are ready to scoop up any cryptocurrencies that enter the market.

Institutional interest appears to have spilled over into Bitcoin mining stocks as well. As analysts at HC Wainwright observe, the approval of spot Bitcoin ETFs and the increasing demand for AI-powered power infrastructure have increased investor interest in Bitcoin mining stocks.

This optimism is also supported by bullish price targets from industry leaders, with Michaël van de Poppe suggesting that BTC could rally to $300,000 to $600,000 this market cycle.

At press time, Bitcoin was trading above $59,650, up 9.7% in the past week.