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coinpedia 2025-01-16 07:56:50

Bitcoin ETF Inflows Surge as Institutional Buyers React to Core CPI Drop

The post Bitcoin ETF Inflows Surge as Institutional Buyers React to Core CPI Drop appeared first on Coinpedia Fintech News Bitcoin has surpassed the $100K psychological level once again for the first time in the past two weeks, thanks to January 15, 2025, the US Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) increased by 0.4% last month. This has triggered a massive $755.1 million in Bitcoin ETF inflows, with Fidelity’s FBTC leading at $463 million. Bitcoin ETF Recorded an Inflow Of $750 Million According Farside report Bitcoin ETF recorded a net inflows into Bitcoin ETFs soared to $755 million, as institutional investors eagerly seized the opportunity to purchase Bitcoin at a dip. This surge in ETF investments marks a sharp reversal after four consecutive trading sessions of outflows. Over 7,500 Bitcoins were scooped up from the market by these investment products, outpacing the daily Bitcoin production of only 450 BTC. Leading this inflow charge was Fidelity FBTC with an impressive $463.1 million in inflows, but Ark Invest’s ARKB also saw notable inflows of $138.8 million. While BlackRock’s iShares Bitcoin Trust (IBIT) saw a smaller influx of $31.9 million, it was notable for its massive trading volume of $2.35 billion. Globally Bitcoin ETF Demand Surge Interest in Bitcoin ETFs isn’t just coming from the U.S. Countries around the world are showing increased demand. Bitwise Invest’s CEO, Hunter Horsley, revealed that they’ve received inquiries from various nations, with some considering shifting investments from government bonds to Bitcoin. We just provided some information for a nation state asking about Bitcoin ETFs. Considering moving some exposure from foreign currency govt bonds into BTC. Bitcoin is entering a new chapter — — Hunter Horsley (@HHorsley) January 15, 2025 Recently Coinpeida news reported that the Thailand Securities and Exchange Commission (SEC) is eying the approval of the first Bitcoin exchange-traded fund (ETF). What Fueling This Surge? The surge in Bitcoin ETF inflows can be traced back to the recent Consumer Price Index (CPI) report. For December, the CPI rose by 0.4% , bringing the annual inflation rate to 3.2% after a 0.3% increase in November. This higher inflation reading sparked speculation about future interest rate cuts, with the CME FedWatch tool suggesting a 30% chance of a rate cut during the Federal Reserve’s meeting in March. Along with this, the S&P 500 experienced a jump of over 100 points, adding $900 billion in market value. This positive movement in traditional markets also helped boost Bitcoin’s price.

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