Institutional Buyers Turn Bullish as Bitcoin ETFs Hit $741M Inflow Milestone

Bitcoin ETF inflows reached $741.5 million on Sept. 10, marking the highest single-day inflow since the $799.4 million recorded on July 16. This inflow occurred during a three-day period from Sept. 8 to 10, during which Bitcoin ETFs saw more than $1.1 billion in combined inflows, pushing cumulative net flows above $55 billion since their launch in January 2024. The inflows were observed as Bitcoin traded within a range of $110,000 to $116,000, suggesting that institutional investors viewed the consolidation as an opportunity for accumulation.

Bitfinex Alpha noted that this price action reflected “constructive dip-buying, with logical support zones being actively defended”. Moreover, the timing of the inflows aligned with historical seasonal patterns that have historically favored Bitcoin’s performance in the fourth quarter. While September is traditionally a weak month for Bitcoin, the report highlighted that the “red September” effect has weakened in recent years. Short-term holder profitability metrics further supported the institutional buying thesis, with 58% of recent buyers remaining in profit following Bitcoin’s rebound from $107,370.

The inflow momentum extended to Ethereum ETFs, which ended a six-day outflow streak by recording $200 million in combined inflows on Sept. 9 and 10. This shift indicated a recovery in institutional interest, particularly for Ethereum, which had lagged behind Bitcoin in recent performance. Bitfinex Alpha emphasized that Ethereum’s dependency on ETF flows is more pronounced than Bitcoin’s and highlighted a balance between speculative demand and structured arbitrage-driven participation through cash-and-carry strategies.

The renewed demand for crypto ETFs came amid improving macroeconomic conditions and changing expectations about Federal Reserve rate cuts. Recent Consumer Price Index (CPI) and Producer Price Index (PPI) data prompted traders to price in three rate cuts this year instead of two. Historically, October and November have been Bitcoin’s strongest months, averaging 21.9% and 46% returns, respectively, with fourth-quarter combined returns averaging an impressive 85% with a 52% median. ETF velocity measurements indicated that sustained daily inflows of $150–200 million typically signaled bullish institutional regimes, and the recent three-day performance exceeded these thresholds significantly.

The divergent performance between Bitcoin and Ethereum ETFs highlighted distinct patterns in institutional adoption. Stronger flows for Bitcoin reflected a preference for direct spot exposure, while Ethereum’s recovery suggested renewed interest in more complex trading strategies involving derivatives markets. Despite ongoing macroeconomic uncertainties, including Federal Reserve policy deliberations and political tensions, institutional buyers appeared to view current price levels as attractive entry points.

The recent inflow trends suggest that Bitcoin ETFs may be well-positioned for sustained momentum into the traditionally strong fourth quarter. With cumulative flows now exceeding $55 billion and institutional demand showing clear recovery signals, the funds are likely to capitalize on favorable seasonal dynamics. The shift in investor preference is also evident in the performance of competing funds like the iShares Bitcoin Trust and the Grayscale Bitcoin Trust. The iShares fund, with its lower expense ratio of 0.25% and financial backing from BlackRock, has seen 82% asset inflows over the past year, while Grayscale’s fund has experienced a 17% decline.

Overall, the recent inflows and shifting institutional preferences underscore the growing acceptance of Bitcoin and Ethereum as investment assets. As crypto ETFs continue to attract large-scale inflows, their impact on market dynamics and investor sentiment is expected to intensify, particularly as the year-end seasonality takes hold.