Bitcoin ETFs Hit Highest Inflow Since July

US-listed Bitcoin ETFs saw a massive inflow on Friday (23). According to Farside Investors, these funds recorded more than $252 million in daily net inflows, their highest level since July 23.

This influx occurred after Fed Chairman Jerome Powell’s speech at the Jackson Hole symposium, which excited the markets. In his speech, Powell stated that “it is time to lower interest rates”, causing all risk assets to appreciate.

BlackRock and Fidelity lead the way

In addition to the inflows, trading volumes for the 11 ETFs were also high, reaching $3.12 billion on Friday. In this case, the number represented the highest daily volume since July 19, according to data from SoSoValue.

Once again, BlackRock’s IBIT ETF led trading activity and inflows at $1.2 billion and $83 million, respectively. Next came Fidelity’s FBTC with $64 million in inflows, while Bitwise’s BITB brought in $42 million.

In the case of BITB, it surpassed the $2 billion AUM mark for the first time. Grayscale’s GBTC was the only product showing net outflows, losing $35 million. However, its BTC mini fund saw inflows of $50 million.

Time to ease interest rates

Jerome Powell confirmed signs that the public agency is ready to ease monetary policy at a Jackson Hole symposium on Friday, with bitcoin rising above $64,000 afterward.

“The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks,” Powell said.

Crypto traders widely expect the Fed to make its first rate cut at its next policy meeting scheduled for September 18. While Powell did not set a date for the cut, 65% of analysts expect a 25 basis point rate reduction at the next meeting.

Tighter monetary policies generally reduce risk appetite in financial markets, which contributes to these assets losing value. Conversely, lower rates increase the allure of asset classes like cryptocurrencies as investors have cheaper access to capital and seek higher returns.

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