Bitcoin News Today: Bitcoin ETFs Gain Institutional Momentum as "Digital Gold" Demand Surges

Bitcoin’s spot ETFs continue to see a steady flow of inflows, with recent data showing a resurgence in demand for the asset as a “digital gold” reserve. Over the past two weeks, Bitcoin ETFs have recorded significant net inflows, particularly on September 2, when Fidelity’s Wise Origin Bitcoin Fund (FBTC) alone attracted $132.7 million. BlackRock’s IBIT added $72.8 million, contributing to a total inflow of $296.9 million on that day [2]. This contrasts with a sharp outflow of $23.2 million recorded earlier in the week on August 29 [1]. The data reflects a broader trend in which Bitcoin ETFs are increasingly becoming a preferred vehicle for institutional and retail investors seeking exposure to the crypto asset.

The inflows have coincided with a stabilization in Bitcoin’s price, which has traded around the $111,000 level after a period of volatility in early September. Analysts suggest that the renewed inflows into Bitcoin ETFs signal a shift in market sentiment, with investors once again favoring Bitcoin over other cryptocurrencies. Ethereum ETFs, by contrast, have seen significant outflows, totaling $135 million on September 2. The diverging trends underscore Bitcoin’s role as a perceived safe-haven asset in the current macroeconomic environment [2].

On-chain metrics also highlight the influence of long-term holders in shaping market dynamics. The Value Days Destroyed (VDD) metric, which tracks the movement of older Bitcoin holdings weighted by price, has seen a decline after a peak at 2.4 earlier in the month. Historically, spikes in this metric have been associated with selling pressure and market corrections. The recent moderation in VDD levels suggests that long-term holders are easing their selling activity, potentially providing some relief to the market. If demand remains strong, this could set the stage for renewed upward momentum in the coming weeks [4]. However, without a surge in buying interest, the reduction in supply pressure alone may not be enough to drive a sustained rally.

The ETF inflows have also drawn attention to institutional participation in the Bitcoin market. U.S. Bank recently announced that it has resumed offering cryptocurrency custody services, including support for Bitcoin ETFs, as part of an expanded offering for institutional clients. The bank partners with NYDIG, a bitcoin-focused financial infrastructure provider, to provide secure custody solutions for digital assets. This move reflects growing institutional acceptance of Bitcoin and highlights the evolving landscape for crypto-related financial services [7]. With more traditional financial institutions entering the space, the infrastructure for Bitcoin ETFs is expected to continue expanding.

Looking at the data in aggregate, Bitcoin ETFs have recorded cumulative inflows of $54,628 million as of August 29, with an average daily inflow of $132.3 million. The highest single-day inflow reached $1,119.9 million on August 2, while the largest outflow recorded was $430.8 million on August 19. These figures illustrate the volatility inherent in the Bitcoin ETF market but also highlight the growing interest from investors seeking exposure to the asset class. As the market continues to evolve, further inflows are likely to depend on macroeconomic conditions, regulatory developments, and the performance of the broader cryptocurrency market [1].

Source: [1] Bitcoin ETF Flow (US$m) (https://farside.co.uk/btc/) [2] Bitcoin ETF Inflows Resume Sparking “Digital Gold” Narrative, Ether ETFs Bleed (https://finance.yahoo.com/news/bitcoin-etf-inflows-resume-sparking-123624103.html) [4] Bitcoin Cycle Structure Questioned As VDD Mirrors Historic Tops (https://cryptorank.io/news/feed/b23e9-bitcoin-cycle-structure-questioned-as-vdd-mirrors-historic-tops) [7] U.S. Bank Resumes Bitcoin Cryptocurrency Custody Services for Institutional Investment Managers (https://ir.usbank.com/news-events/news/news-details/2025/U-S--Bank-Resumes-Bitcoin-Cryptocurrency-Custody-Services-for-Institutional-Investment-Managers/default.aspx)