BTC ETFs Lock $2.3B in a Week, Fueled by $642M Pump Pre-Fed Cut

Investors put $2.3 billion into US spot Bitcoin ETFs last week, a big bounce ahead of the Fed’s rate cut. $642 million...

Quick overview

  • Investors injected $2.3 billion into US spot Bitcoin ETFs last week, signaling renewed institutional interest ahead of a potential Fed rate cut.
  • Fidelity's Wise Origin Bitcoin Fund and BlackRock's iShares Bitcoin Trust received significant inflows, with both funds gaining over 4% for the week.
  • The market anticipates a 25-basis-point rate cut at the upcoming FOMC meeting, which could bolster risk assets like cryptocurrencies.
  • Despite recent gains, Bitcoin still trails gold, which has risen 40% in 2024, but is showing signs of catching up as investors seek alternatives.

Investors put $2.3 billion into US spot Bitcoin ETFs last week, a big bounce ahead of the Fed’s rate cut. $642 million flowed in on September 12 alone, the most in a single day this month, according to Farside Investors.

Most of the flows went into Fidelity’s Wise Origin Bitcoin Fund (FBTC) which got $315 million and BlackRock’s iShares Bitcoin Trust (IBIT) which got $264 million. Both funds are up more than 4% for the week, showing institutional demand is back.

IBIT added 2,270 BTC in one day, $264.6 million, and had $3.2 billion in daily volume. It’s the most actively traded Bitcoin ETF in the US. BlackRock also plans to tokenize IBIT to expand access through blockchain-based products.

Fed Cuts Loom

The market is waiting for next week’s FOMC meeting where a rate cut is all but certain. Some political voices, including former President Donald Trump, are calling for a 100-basis-point cut but economists expect a smaller move.

A Reuters poll of 107 economists showed 105 expect a 25-basis-point cut to 4.00%-4.25% and one to two more cuts before year-end and as many as three before 2025 ends.

Key expectations:

  • September FOMC decision: 25 bps cut
  • Year-end outlook: Two to three total cuts
  • Impact: Lower yields may support risk assets, including crypto

Traders are piling into Bitcoin ETFs ahead of the easing.

Bitcoin Price Chart - Source: Tradingview
Bitcoin Price Chart – Source: Tradingview

Bitcoin Chases Gold’s Tail

Despite the bounce, Bitcoin is still behind gold. Gold is up 40% in the first 8 months of 2024 and is the clear haven in a world of economic uncertainty. Gold ETFs are still getting inflows while Bitcoin ETFs had stalled until this week.

Research firm Ecoinometrics noted that gold is still the go-to hedge in portfolios but Bitcoin is “catching up” with inflows as investors prepare for a weaker US dollar. At $116,000 now, $118,000 resistance. Above that and we’re off to the races.

ABOUT THE AUTHOR See More
Maham Arslan
Crypto News Writer | Blockchain & Web3 Reporter
Maham is a crypto news writer and market analyst specializing in breaking down the latest developments across blockchain, digital assets, and decentralized finance (DeFi). With hands-on experience covering high-impact stories—from regulatory shifts and token launches to macro-driven price movements—she delivers timely, accurate, and SEO-optimized content for fast-growing crypto media platforms. Her expertise lies in producing daily news reports, price predictions, technical summaries, and coverage of market-moving events. Maham tracks real-time updates across global newswires, X (Twitter), and on-chain data to provide actionable insights tailored for retail traders, crypto enthusiasts, and institutional readers. With a strong grasp of crypto fundamentals and Web3 trends, she delivers content that’s informed, accessible, and always on time.

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