Bitcoin ETFs See $1.7B Inflows as BTC-USD Climbs to $116,600

Massive Inflows Revive Bitcoin ETF Momentum

Bitcoin (BTC-USD) ETFs have reignited institutional demand with one of the strongest streaks of inflows since their January debut. On September 11, U.S.-listed spot Bitcoin ETFs recorded $552.7 million in net inflows, led by BlackRock’s IBIT with $366.2 million and Fidelity’s FBTC with $134.7 million. Bitwise’s BITB added another $40.4 million, while VanEck, Invesco, and Franklin Templeton funds also posted positive flows. This marked the fourth consecutive day of inflows, totaling $1.7 billion in just four sessions, reversing the weakness seen at the end of August when Bitcoin ETFs shed $751 million.

Bitcoin Price Reacts to ETF Surge

The surge in ETF inflows has coincided with Bitcoin’s price climb. As of September 12, BTC-USD traded at $116,610, up nearly 1.9% in 24 hours, extending its rebound from late August lows near $107,500. Analysts point out that ETF activity has become the strongest determinant of price discovery since U.S. regulators approved spot ETFs in early 2024. Trading volumes reflected renewed conviction, hitting $2.83 billion on Thursday, while assets under management swelled to $149.64 billion, equal to 6.57% of Bitcoin’s total market capitalization.

Record-Breaking Single-Day Inflows

Earlier in the week, Bitcoin ETFs saw $741 million in net inflows, the largest daily figure in two months. This inflow represented not only a shift in sentiment but also a sign of institutional capital rotation back into Bitcoin after Ethereum ETFs dominated flows during August. At that point, spot Ether products attracted $3.87 billion, while Bitcoin funds lagged. By contrast, September has so far seen nearly $2 billion flow into Bitcoin ETFs in just eight trading sessions, widening the gap with Ethereum, which has suffered $550 million in outflows during the same period.

Institutional Allocation and ETF Holdings

Data from HODL15Capital shows that Bitcoin ETPs collectively now hold 1.47 million BTC, about 7% of the fixed 21 million supply. U.S.-listed ETFs account for 1.29 million BTC, with BlackRock’s IBIT alone holding 746,810 BTC and Fidelity’s FBTC nearly 200,000 BTC. Year-to-date, Bitcoin ETPs have added 170,000 BTC worth nearly $18.7 billion, despite August’s turbulence. This stockpiling underscores how ETFs have become a structural force in Bitcoin liquidity, reducing available supply on exchanges and amplifying moves during periods of demand.

Macro Backdrop and Fed Expectations

ETF inflows are being driven by macro conditions as well as institutional adoption. Inflation data in the U.S. came in softer than expected, while revised labor statistics pointed to a weaker jobs market. CME Group’s FedWatch Tool now prices in a 92.5% probability of a 25 bps cut at the September 17 FOMC meeting and a 7.5% chance of a 50 bps cut. Lower rates historically support risk assets like Bitcoin, and ETF investors appear to be positioning early. Vincent Liu, CIO at Kronos Research, noted that “continued ETF inflows could push BTC past ATH,” with liquidity tightening as institutions rotate back into the asset.

Ethereum ETFs and the Rotation Dynamic

While Bitcoin ETFs captured headlines, Ethereum (ETH-USD) products also returned to positive flows after a weak start to September. On September 11, spot Ether ETFs recorded $113.1 million in inflows, led by Fidelity’s FETH with $88.3 million, Bitwise’s ETHW with $19.6 million, and Grayscale’s ETHE with $14.6 million. However, cumulative monthly flows for Ethereum remain negative at $555.6 million in outflows, reflecting a pause after a record five-month streak that saw $11 billion in inflows between April and August. As of September 12, ETH traded at $4,633, up 4.6% in 24 hours, but Bitcoin has decisively retaken inflow dominance.

Market Impact and Price Targets

The renewed wave of Bitcoin ETF inflows has lifted sentiment across the entire crypto market, which added 1.8% in market cap in 24 hours. With Bitcoin near $116,600, analysts are now eyeing $120,000 as the next resistance, followed by more ambitious targets of $140,000 if the inflow streak persists. Prediction markets reflect growing conviction, with some traders giving Bitcoin an 89% probability of hitting $130,000–$140,000 before year-end versus a far smaller probability of retesting $100,000.

Verdict: Bitcoin ETFs Cement Institutional Grip

The data is unambiguous—ETF flows now drive Bitcoin’s liquidity, momentum, and price direction. Four days of $1.7 billion in inflows, cumulative holdings of 1.47 million BTC, and trading volumes above $2.8 billion per day underscore the institutionalization of Bitcoin. While risks remain tied to Fed policy and crypto market volatility, the current streak signals that Bitcoin ETFs are no longer a convenience—they are the engine of BTC-USD’s price action.

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