The digital currency world quickly shook off its brief jitters this week, with U.S. spot Bitcoin exchange-traded funds (ETFs) seeing fresh cash pour in. After a small dip following the Federal Reserve’s rate decision, these funds attracted a hefty $163 million on Thursday. This swift turnaround shows how resilient investors are when it comes to digital assets.
On Wednesday, the market saw a modest $51 million leave these Bitcoin ETFs. This happened right when the Federal Reserve announced its move on interest rates. The Fed did what most expected: it cut the federal funds reference rates by 25 basis points. This brought them down to a range of 4% to 4.25%. Initially, Bitcoin’s price slipped below $116,000. But by Thursday, it bounced back, touching a high of $117,900 before settling down again. Before Wednesday’s hiccup, the Bitcoin ETFs had enjoyed a strong seven-day streak of inflows.
September’s Strong Showing
The positive trend for Bitcoin ETFs continued, mirroring the price recovery. Fidelity’s FBTC led the pack, pulling in $97.3 million for the day. Close behind were Ark Invest’s ARKB with $25 million and Bitwise’s BITB, adding $10.9 million. Other funds from VanEck, Invesco, and Franklin Templeton also saw smaller gains, ranging from $3.5 million to $6.8 million. Interestingly, the dominant IBIT fund from BlackRock and some others stayed neutral, neither gaining nor losing capital during the session.
For the week so far, Bitcoin ETFs have gathered $660 million. This is less than the impressive $2.3 billion seen the week before, but Friday’s numbers are still to come. Looking at the bigger picture, September has been a strong month, with net flows exceeding $3.2 billion. Since their launch in January 2024, these funds have piled up $57.4 billion in net inflows. Their total assets under management (AUM) now stand at a whopping $155 billion. This amount represents about 6.6% of Bitcoin’s total market value, according to data from SoSoValue.
A Wider Crypto Horizon and Short-Term Wiggles
It’s not just Bitcoin capturing attention. Ethereum ETFs also rebounded, pulling in $213.07 million on Thursday after two days of outflows. Even newer players stepped onto the field. The very first ETFs linked directly to XRP and Dogecoin launched the same day. They kicked off with a combined volume of $54.7 million, marking the biggest first-day debut for an ETF in 2025 so far.
This success speaks volumes about growing investor hunger for regulated ways to access more cryptocurrencies beyond just Bitcoin and Ethereum. It also hints at a more welcoming regulatory landscape taking shape in the United States. When you combine this with the Fed’s more flexible money policy, it could set the stage for a positive run in the broader crypto market over the next few months.
Despite this hopeful outlook, the market faces some bumps in the road in the short term. As of our latest check, Bitcoin’s price was $115,949. This is a 1.6% drop over the last 24 hours, based on figures from CoinGecko. Other major cryptocurrencies like ETH, XRP, and DOGE have seen even steeper falls, down 2.2%, 3.5%, and 4%, respectively. While a friendly regulatory environment and more rate cuts could spark new breakthroughs for the crypto market before 2025 ends, investors are watching the current short-term ups and downs closely.