Bitcoin ETFs Log $250M Net Inflows, Highest Since July, After Rate Cut Signal at Jackson Hole

As a seasoned crypto investor with over a decade of market experience, I find myself increasingly optimistic about the current state of Bitcoin and its U.S.-listed ETF counterparts. Friday’s net inflows of over $252 million and trading volumes exceeding $3.12 billion are clear indicators that institutional interest in Bitcoin is surging.

On Friday, U.S.-based Bitcoin ETFs experienced their largest daily net inflow since mid-July, totaling approximately $252 million. This surge was likely driven by optimistic remarks made during the Jackson Hole symposium, which boosted investor confidence in riskier assets such as Bitcoin.

Today’s trading volumes for eleven ETFs reached a peak of $3.12 billion, the highest level since July 19th, according to SoSoValue data. BlackRock’s IBIT was the most active in terms of trading activity and inflows, with a trade volume of $1.2 billion and inflows of $83 million.

At the Jackson Hole symposium on Friday, Federal Reserve Chair Jerome Powell signaled the central bank’s intention to ease monetary policy. This announcement caused a surge in the price of bitcoin, which rose above $64,000 shortly thereafter.

In his address, Powell indicated that it’s now appropriate to modify our policies. He emphasized that the general trend is established, and the decisions regarding when and how much to lower interest rates will be based on new information, the changing situation, and the balance between potential risks.

Many crypto traders anticipate that the Federal Reserve will announce its initial interest rate reduction during their upcoming policy meeting on September 17.

Stricter monetary policies usually decrease investor interest in riskier financial sectors, whereas lower interest rates make investments in assets like cryptocurrency more attractive since they provide easier access to capital resources.