U.S. spot Bitcoin ETFs posted their strongest two-day inflows since early August, drawing renewed attention from investors and analysts. Across Tuesday and Wednesday, funds saw a combined $633.3 million flow into the market, with each session exceeding $300 million.
BlackRock’s IBIT was the largest beneficiary across the two sessions, recording a total of $362.7 million in inflows, while Fidelity’s FBTC contributed about $142.5 million. On a daily basis, FBTC led Tuesday with $132.7 million, and IBIT dominated Wednesday with $289.8 million, according to Farside Investors.
Analysts say the uptick offers short-term support but stops short of proving a sustained market turnaround. Dean Chen, an analyst at Bitunix, called the activity “short-term support to market sentiment” and characterized the moves as “concentrated dip-buying”—a pattern where institutional mechanisms and arbitrage amplify flows during pullbacks rather than signaling a definitive trend reversal.
Chen pointed to several drivers behind the inflows: market-making arbitrage during price dips, institutions scaling in to lower average entry costs, and a rotation of capital away from Ethereum-focused products. Ethereum ETFs recorded their second straight day of outflows totaling $135.3 million, underscoring a temporary allocation shift toward Bitcoin.
Other experts see a strategic reallocation at work. Illia Otychenko, lead analyst at CEX.IO, noted investors are moving funds back into Bitcoin from Ethereum amid uncertainty about the impact of a potential rate cut. Maria Carola, CEO of StealthEx, said institutions appear to be treating Bitcoin as a longer-term hedge against fiat debasement, favoring stability and store-of-value narratives over growth-oriented plays.
Bitcoin itself was trading near $110,800, down about 0.4% on the day and roughly 11% off its recent all-time high. Options markets show bullish positioning into the September 26 expiry, with growing open interest at the $120,000, $130,000, and $140,000 strikes.
While the two-day inflow is noteworthy, Chen warned that reversing August’s broader outflows will require several consecutive days, if not weeks, of sustained inflows. Market participants should also weigh macro risks—recent U.S.-India tariff moves and broader trade tensions could lift inflation expectations, which in turn affects risk assets.
What to watch: consecutive inflow days from ETFs, continued rotation from Ethereum products, and macro headlines that could shift inflation and rate expectations.
Source: Decrypt. Read the original coverage for full details.