Nearly $1B is Injected Into BTC ETFs as Bull Market Signs Return

If ETF flows are any indication, Bitcoin bulls are on the charge.

US bitcoin exchange-traded funds (ETFs) gathered a combined $999 million in fresh investment on Monday, according to Farside Investors data – the largest single-day inflow since October 6, when the funds pulled in over $1.2 billion and bitcoin reached a fresh all-time high of $126,080.

Bitcoin closed at $86,552 after touching $87,330 on Monday, climbing nearly 13% on the week.

What appears to be driving the love for the cryptocurrency back into the market is not unique to crypto-native assets but is instead a macro phenomenon. Bitcoin’s recent uptick was initially driven by the US Treasury’s announcement that it would at least double down on its liquidity support measures by buying back $4 billion worth of securities in each of its operations. This was interpreted as a form of “mini quantitative easing,” which saw the yields on 30-year Treasury notes decline, the value of the dollar drop, and a concomitant rise in the appeal of alternative assets such as bitcoin. What distinguishes this cycle from the previous ones, however, is the fact that spot ETFs have created a direct link between macro forces and bitcoin, which was not the case before.

The flows are already speaking volumes about the connection. BlackRock’s iShares Bitcoin Trust drew in $381.4 million of Monday’s haul, while ARK 21Shares took $289.1 million while Fidelity’s Wise Origin Fund attracted $238.8 million.

A crossover above the 365-day moving average occurred last Tuesday, according to CryptoQuant in a tweet, suggesting that the bears have officially capitulated.