BTC and ETH soar to three-week highs as ETFs see net inflows

The cryptocurrency market experienced a long-awaited revival after the US Federal Reserve cut interest rates on Wednesday for the first time in about four years.

The two largest digital assets have seen a surge, rising by roughly 10% over the past few days.

btc Price Surges Amid ETF Inflows

The 11 bitcoin spot ETFs have enjoyed demand and attention from investors since they went live in January this year. Their negative and positive streaks in terms of net flows have influenced the price of the underlying asset to the point that btc hit a new all-time high just two months after they went live.

As is the case in most markets, investors' outlook changes based on current macro and microeconomic conditions and news. Therefore, it was interesting to follow how they would act this week in particular due to the Federal Reserve's FOMC meeting that took place on Wednesday.

After all, this was the first US interest rate cut since 2020, which also means it was the first since the inception of btc ETFs. In the days leading up to the meeting, US investors poured more than $500 million in net inflows into the financial vehicles, but withdrew $52.7 million on Wednesday.

However, its attitude changed again yesterday, the first full day of trading after the rate cut. bitcoin-etf-flow-all-data/” data-wpel-link=”external” target=”_blank”>Data FarSide shows total net inflows of $158.3 million. Ark Invest’s ARKB topped the list with $81.1 million, followed by Fidelity’s FBTC with nearly $50 million. There were no reportable outflows, but BlackRock’s IBIT was flat.

In the same time frame, the price of btc skyrocketed from $59,000 (on the day of the rate cut) to just over $64,000 earlier today before pulling back slightly to $63,400 (as of now).

Even eth ETFs see inflows

Unlike bitcoin ETFs, ethereum ETFs have failed to attract any real interest and have seen very few days of net inflows since their inception in late July. In the days leading up to the FOMC meeting, investors withdrew $9.4 million on Monday and $15.1 million on Tuesday. Another $9.8 million was withdrawn on Wednesday.

However, the tides eth/” data-wpel-link=”external” target=”_blank”>turned Also yesterday, net inflows of $5.2 million were recorded for ethereum ETFs. Interestingly, the entire amount went into BlackRock’s ETHA, while the rest of the ETFs saw no reportable flows.

The price of eth also surged alongside btc. It had fallen to $2,300 during Wednesday’s FOMC meeting, but today it approached $2,575 (up 12%) for the first time since late August.

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