BTC, ETH soar to 3-week highs as ETFs post net inflows

The cryptocurrency market saw a long-term revival after the US Federal Reserve cut interest rates on Wednesday for the first time in about four years.

The two biggest digital assets got off to a flying start, rising about 10% in the past few days.

BTC Price Rises Amid ETF Inflows

The 11 Bitcoin ETFs on the site have enjoyed investor demand and attention since they began trading in January this year. Its negative and positive streaks in terms of net flows have influenced the price of the underlying asset to the point that BTC hit a new all-time high just two months after seeing the light of day.

As with most markets, investors’ perspective changes with current macro and microeconomic conditions and news. As such, it was interesting to watch how they would perform this week in particular because of the Fed’s FOMC meeting that took place on Wednesday.

After all, this was the first interest rate cut in the States since 2020, which also means it was the first since BTC ETFs were created. In the days leading up to the meeting, US investors poured more than $500 million in net inflows into the financial vehicles, but withdrew $52.7 million on Wednesday.

However, their attitude changed again yesterday, the first full day of trading after the rate cut. FarSide data shows total net inflows of $158.3 million. Ark Invest’s ARKB led the pack with $81.1 million, followed by Fidelity’s FBTC with nearly $50 million. There were no exits to report, but BlackRock’s IBIT saw no action.

In the same time frame, the price of BTC soared from $59,000 (on the day of the rate cut) to just over $64,000 earlier today before returning slightly to $63,400 (as of now) .

Bitcoin/Price/Chart 20.09.2024. Source: TradingView Even ETH ETFs see entries

Unlike Bitcoin ETFs, Ethereum counterparts have failed to attract real interest, posting very few days of net inflows since their inception in late July. In the days leading up to the FOMC meeting, investors pulled $9.4 million on Monday and $15.1 million on Tuesday. Another $9.8 million was withdrawn on Wednesday.

However, the tide turned for Ethereum ETFs yesterday as well, with net inflows totaling $5.2 million. Interestingly, the entire amount went to BlackRock’s ETHA and the rest of the ETFs saw zero reportable flows.

The price of ETH also soared alongside BTC. It had dipped to $2,300 during Wednesday’s FOMC meeting, but today it is closer to $2,575 (up 12%) for the first time since late August.

Ethereum/Price/Chart 20.09.2024. Source: TradingView SPECIAL OFFER (sponsored) Binance Free $600 (exclusive of CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

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