Recently, there has been a significant increase in inflows into Bitcoin ETFs, indicating a renewed interest from institutional investors in this asset.
Inflows into Bitcoin ETFs
On Friday, Bitcoin ETFs attracted $642.35 million, extending a five-day streak of gains. Cumulative inflows now stand at $56.83 billion, while total assets under management have climbed to $153.18 billion, representing 6.62% of the entire Bitcoin market cap.
Competition with Gold ETFs
Despite the success of Bitcoin ETFs, competition from gold remains strong. According to Ecoinometrics, gold continues to outperform Bitcoin in ETF inflows as investors view it as a safe asset amid market uncertainty. Gold has gained around 40% in the first eight months of the year, significantly outpacing Bitcoin's performance.
Fed Rate Cut Expectations
Attention is now turning to the Federal Reserve, which will announce its rate decision on September 17. A reduction of 25 basis points is anticipated, spurred by political pressure. However, potential changes in policy may continue to drive market volatility.
The growing interest in Bitcoin ETFs highlights the market's recovery after recent fluctuations, but competition from traditional assets like gold and uncertainty in financial policy remain significant factors.
