The US Bitcoin Exchange Trade Fund (ETF) has had its best run in the last few months, with billions of people flowing for investors to prepare for the federal reserve potential rate cuts.
According to Farside investors, US spot Bitcoin ETFs have seen a five-day net inflow, exceeding $2.3 billion in a week. Daily inflows were $741 million on September 10th, $552 million on September 11th, and $642 million on September 12th.
On September 10th, Bitcoin price rose above $115,000, making it the highest inflow since July.
It appears that institutions are driving a surge in. Fidelity’s FBTC and BlackRock’s IBIT are consistently consistent with the list of funds raising new capital. On September 12 alone, Fidelity pulled in about $315 million and BlackRock pulled in $264 million.
The trading volume is also increasing. Bitcoin ETFs see more than $3.9 billion each day, indicating strong participation in the system.
ETFs make it easier for pensions, hedge funds and asset managers to purchase Bitcoin without custody. ETFs are moving beyond niche investments and are now mainstream.
Much of this current wave is tied to Fed policy. Investors are widely hoping the Fed will cut fees at its September 17th meeting. A Reuters survey of 107 economists found 105 people cut 25 basis points and hopes that more basis points will be cut by the end of the year.
A lower rate means loose financial situation, more liquidity and more appetite for risky assets like Bitcoin. The latest PPI data, which showed a surprising decline in August, added confidence that the Fed will take action.
Experts believe Bitcoin is building its base, and with a stable inflow of ETFs and support from the Fed, Bitcoin could reach a new high by the end of the year.
Beyond the short-term trading frenzy, 2025 is becoming a major year for the institutional adoption of Bitcoin. 2025. Institutional interest has increased through a strong ETF inflow and a wave of new companies adding Bitcoin to their balance sheets.
Geopolitical tensions, weaker jobs and CPI data than expected, and inflationary pressures are forcing institutions to diversify. Many now treat Bitcoin not only as a speculative asset, but also as a strategic macroeconomic allocation.
