US spot Bitcoin exchange-traded funds recorded $517.19 million in net inflows on Wednesday as investors returned to crypto following a sharp rebound across the market.
Eight of the 12 spot Bitcoin ETFs posted positive flows, according to SoSoValue data. BlackRock’s IBIT dominated the session with $284.7 million in net inflows, followed by Ark Invest and 21Shares’ ARKB with $77.7 million and Fidelity’s FBTC with $62.4 million.
Bitcoin ETF flows (Source: SoSoValue)
Wednesday’s total was the largest daily inflow for the funds since May 4 and extended their positive flow streak to three consecutive trading days.
The turnaround is particularly positive after US spot Bitcoin ETFs shed roughly $390 million during the previous trading week, with Fidelity’s FBTC and Grayscale’s GBTC among the biggest sources of outflows.
Bitcoin jumps above $69,000
The surge in institutional demand coincided with a sharp cryptocurrency market rally. Bitcoin climbed above $69,000 on Wednesday for the first time in around two months, while Ethereum moved back above $2,000. Crypto-related equities also rallied as investor appetite for risk assets improved.
BTC's price action over the past 24 hours (Source: CoinCodex)
One of the biggest catalysts was an announcement from the US Treasury Department that it will at least double the size of liquidity-support buybacks for longer-dated Treasury securities.
Beginning Sept. 9, the maximum size of buyback operations for 10- to 20-year and 20- to 30-year nominal coupon securities will increase from $2 billion to at least $4 billion per operation. Treasury said the move is intended to provide greater liquidity support in longer-dated markets.
SEC proposal boosts crypto sentiment
Improving regulatory sentiment also helped support the rally. On Tuesday, the Securities and Exchange Commission proposed “Regulation Crypto Assets,” which is a framework designed to create tailored exemptions for certain digital asset offerings.
The proposal includes a startup exemption covering offerings of up to $5 million over four years and a fundraising exemption allowing issuers to raise up to $75 million annually. It also proposes a potential safe harbor through which certain digital assets could cease being treated as securities once specified conditions are met.
Together, stronger ETF demand, improving liquidity expectations and signs of regulatory progress have given Bitcoin its strongest burst of momentum in months.
