U.S. Bitcoin ETFs Attract $730.9 Million as Institutional Demand Strengthens
U.S. spot Bitcoin exchange-traded funds recorded $730.9 million in net inflows, their strongest single-day performance since January 14, as institutional demand for Bitcoin showed renewed strength.
Data from SoSoValue showed that BlackRock’s iShares Bitcoin Trust (IBIT) accounted for the largest share of Thursday’s inflows, attracting approximately $454 million. Six Bitcoin funds recorded net capital inflows during the session, including products managed by Fidelity and Grayscale.
The latest inflow followed a strong August for U.S. Bitcoin ETFs, which collectively recorded $3.5 billion in net inflows. That marked their strongest monthly performance since September 2025.
BTC Markets analyst Rachael Lucas attributed the latest ETF activity to increasing accumulation by professional investors. She also pointed to IBIT’s outsized contribution, noting that institutional investors commonly use BlackRock’s fund when building significant regulated Bitcoin positions.
The concentration of flows in IBIT could indicate longer-term institutional allocations rather than short-term trading activity, although ETF flows alone do not establish investors’ intentions. Bitcoin subsequently recovered above $81,000 before trading near $80,950.
Bitcoin ETF Inflows Meet a More Supportive Fed Outlook
The broader market environment also improved after Federal Reserve Governor Christopher Waller indicated that he would support keeping interest rates steady at the September meeting if inflation continues to moderate.
BTSE Chief Operating Officer Jeff Mei described Waller’s comments as a catalyst for stocks and cryptocurrency markets. Expectations surrounding monetary policy can influence demand for risk assets, including Bitcoin and crypto-related equities.
The Treasury Department’s announcement of an expanded buyback program also contributed to the broader cryptocurrency rally during August. However, market participants still face uncertainty over whether favorable economic conditions will be sufficient to support a sustained move higher in Bitcoin.
Crypto-linked stocks advanced alongside the broader market. Strategy rose 17.6% to $144.80, while Coinbase gained 10% and ended Thursday at $192.70.
Circle also extended its gains, climbing 16.5% to close at $103.23. The moves reflected stronger investor demand across major publicly traded companies tied to the digital-asset sector.
Inflation and Employment Data Remain Key Risks
Despite the strength of Bitcoin ETF inflows, upcoming economic data could determine whether the cryptocurrency can hold the $81,000 level.
Employment and inflation reports expected in the coming period are likely to provide markets with additional clues about the Federal Reserve’s policy direction. Lucas noted that Waller’s position was explicitly linked to continued cooling in inflation, leaving financial markets exposed to a stronger-than-expected inflation reading.
A hotter inflation report could complicate expectations for monetary policy and undermine some of the support currently benefiting risk assets. Conversely, continued evidence of easing inflation could reinforce expectations for a stable or more accommodative policy environment.
Seasonality also presents a potential headwind. September has historically been a weaker month for Bitcoin performance, meaning the latest ETF strength comes despite a period that has often proved challenging for the cryptocurrency.
Bitcoin’s relationship with traditional assets has also shifted. Its 90-day correlation with gold has risen above 50%, reaching its highest level in six years.
At the same time, Bitcoin’s correlation with the S&P 500 has declined to near zero. The divergence suggests that investors may increasingly be treating Bitcoin as an asset with characteristics closer to an inflation hedge than a straightforward proxy for U.S. equities.
The $730.9 million daily ETF inflow therefore provides evidence of renewed institutional participation, particularly through BlackRock’s IBIT. Whether that demand can translate into a sustained Bitcoin recovery will depend in part on incoming inflation and employment data and the Federal Reserve’s response to those figures.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.