Significant Inflows in Bitcoin ETFs as Jackson Hole Symposium Signals Rate Cuts
In a remarkable turnaround, U.S.-listed spot Bitcoin exchange-traded funds (ETFs) have recorded over $252 million in net inflows, the highest since late July, following a series of optimistic remarks regarding monetary policy at the recent Jackson Hole symposium. Notably, trading volumes surged past $3.12 billion—the peak trading level observed since July 19—according to data compiled by SoSoValue.
Leading the way was BlackRock’s IBIT ETF, which attracted $1.2 billion in trading activity and registered $83 million in net inflows. Fidelity’s FBTC followed closely with an additional $64 million, while Bitwise’s BITB crossed the $2 billion AUM milestone for the first time with $42 million in new inflows. On the contrary, Grayscale’s GBTC experienced outflows totaling $35 million, yet its mini bitcoin fund managed to gain $50 million in inflows.
The enthusiasm surrounding Bitcoin can be largely attributed to Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole symposium indicating a likely shift toward looser monetary policy. This anticipated change has lifted Bitcoin prices above $64,000, bolstering the overall market sentiment. In his speech, Powell articulated, “The time has come for policy to adjust,” highlighting that adjustments to monetary policy will be contingent upon forthcoming data and evolving economic conditions.
Market analysts project that the Federal Reserve may implement its inaugural rate cut during its upcoming policy meeting scheduled for September 17. Historically, tighter monetary policies have discouraged risk appetite within financial markets; conversely, a reduction in rates tends to enhance the appeal of riskier asset classes, including cryptocurrencies, as it permits investors more accessible capital pools.
Post Comment