The US-listed spot Bitcoin Exchange Trade Fund (ETF) is seeing a sharp turnaround in its fortune this month, attracting a fresh influx of nearly $2 billion after an August bruise marked by a fierce red in August.
According to data from SOSOValue, 12 Bitcoin ETF products recorded inflows in six of the first eight trading sessions in September. In just the last four sessions, they have withdrawn about $1.7 billion, indicating a clear revival of investor desire.
The consistency of these inflows is in stark contrast to August, when the same funds suffered a $751 million outflow.
This trend also widened the gap with Ethereum, the second largest cryptocurrency, due to market capitalization.
Bitcoin products are gathering considerable fresh capital this month, while Ethereum invested vehicles have recorded more than $550 million in leaks over the same period.
Nick Forster, founder of the on-chain options platform, Encryption To emphasize that this divergence changes emotions from Ethereum back to Bitcoin.
According to him:
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“The ETH inflow has been quite slow, but BTC saw a meaningful surge in purchasing facilities yesterday. Smart Money appears to be back in BTC and may have taken a breather from the ETH beta after a recent run.”
Bitcoin ETF now promotes price action
The latest flows reinforce the growing role of ETFs in shaping the price trajectory of Bitcoin.
Bitwise Europe’s research director André Dragosch pointed out in X that daily Net ETF flows are the strongest determinant of Bitcoin’s market direction as US regulators approved their first spot product earlier this year.
According to him:
“Since early 2024 and the approval of the US ETF, daily net flows have been significantly correlated with subsequent returns, highlighting the extent to which institutionalized demand via ETPS forms price discoveries.”
In particular, this is evident in Crypto’s recent price performance. The recent degree of inflow this month coincided with Bitcoin’s price consolidated nearly $114,000, reversing performance over the next few weeks.
With this in mind, Dragosh emphasized:
“Bitcoin ETP has become more than just an investor’s convenience. They are now a key determinant of the market liquidity, performance and evolution of Bitcoin’s broader ecosystem.”