This year has been extremely volatile for Bitcoin exchange-traded funds, and this September is not an exception. According to Bloomberg's ETF analyst Eric Balchunas, these products have now flipped into positive territory once again after a “tsunami” of inflows.
The red-hot products, which continue to attract a lot of attention from observers, have now secured roughly $320 million worth of inflows this year.
Earlier this year, for comparison, they were deeply in the red, according to data compiled by Bloomberg.
This turnaround has happened over the past month. A whopping $4.9 billion worth of funds has been poured into the products since Aug. 19. This was the day when the U.S. Treasury announced buybacks of longer-dated bonds. This was considered to be the turning point for the cryptocurrency market that likely kicked off the current cryptocurrency market rally.
Bitcoin itself has surged by roughly 35% since then. It recently topped the $87,000 level after spending much of the year struggling below $80,000.
The cryptocurrency has since slipped below the $85,000 level due to extreme selling pressure.
Topsy-turvy September
The month opened with a $236.5 million outflow on Sept. 1 before the ETFs attracted $101.1 million the following day. They then recorded a massive $730.9 million inflow on Sept. 3, followed by another $174.6 million on Sept. 4.
Investor demand then weakened sharply. From Sept. 8 through Sept. 11, the products suffered four consecutive outflow sessions totaling roughly $463 million.
Another brief recovery on Sept. 14 was followed by some of the month's largest withdrawals: $450.4 million on Sept. 15 and $295.9 million on Sept. 16.
However, that weakness has now been decisively reversed. Nearly $2.31 billion arrives in four sessions
Bitcoin ETFs have recorded four consecutive days of net inflows since Sept. 17.
The streak started relatively modestly with $159.5 million on Sept. 17 before accelerating to $433 million on Sept. 18.
The products attracted roughly $999 million on Sept. 21, their biggest single-day inflow in about 11 months.
Another $714.7 million followed on Sept. 22, bringing combined inflows over the four-session streak to approximately $2.31 billion.
BlackRock's iShares Bitcoin Trust (IBIT) led the latest session with $350.3 million. Fidelity's Wise Origin Bitcoin Fund (FBTC) attracted another $257.4 million. Morgan Stanley's Bitcoin product added $99 million