Bitcoin ETF inflows show ‘sensitivity to interest rate expectations’

US investors poured half a billion dollars into spot bitcoin ETFs last week, with roughly half of those flows entering the offerings on Friday.

The $506 million moving into the BTC funds marked the highest weekly total since July 22 to July 26, Farside Investors data shows. The segment tallied $535 million of net inflows over that span.  

Friday was the day of Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium, during which he noted: “The time has come for policy to adjust.”

Read more: Powell confirms September rate cut, stocks and cryptos rally “Interestingly, the majority of those inflows were on Friday, following the dovish comments from Jerome Powell , indicating bitcoin’s sensitivity to interest rate expectations,” CoinShares research head James Butterfill wrote in a Monday report .

Indeed, the US-listed BTC funds notched $252 million on the last day of the week — the highest one-day net inflow total since July 22, during which the funds reeled in $486 million.

US spot ether ETFs did not follow suit from a flows perspective, as $45 million trickled out of those funds last week, including nearly $6 million on Friday.    

The ETH ETFs have collectively posted negative net flows of $465 million during their first month on the market. They have been dragged down by the higher-priced Grayscale Ethereum Trust (ETHE), which has so far lost more than $2.5 billion in assets. 

Read more: One month in the books for US spot ETH ETFs

The bitcoin funds — after seven and a half months of trading — are closing in on the $18 billion net inflow mark. 

Bitcoin’s price was about $63,400 at 11:30 am ET — down 1.3% in the past 24 hours, but up 8.5% from a week ago. 

ETH was trading at roughly $2,720 at that time — marking a 1% decline in the last day, but a 4% in the past seven days.

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