Bitcoin ETFs See $433M Inflow Amid Institutional Support
Devere Group CEO cites billions in patient capital. Bitcoin ETFs recorded $433 million in net inflows on September 18.
Key points
- Bitcoin ETFs recorded 433 million dollars in net inflows on September 18 following prior withdrawals.
- Devere Group CEO Nigel Green identifies institutional capital as the primary driver of the rally.
- The Federal Reserve raised interest rates to 3.75 percent, increasing the opportunity cost of holding bitcoin.
Bitcoin exchange-traded funds attracted 433 million dollars in net inflows on September 18. This figure marks a reversal after two sessions of significant withdrawals. Devere Group CEO Nigel Green attributes the shift to serious institutional money.
The firm argues that regulated product purchases signal longer-term ownership. Green describes this flow as patient capital distinct from leveraged speculation. This structural change supports the current market recovery.
Institutional Flows Offset Recent Withdrawals
Recent trading data shows mixed results for bitcoin funds. Inflows on September 14 and 18 narrowly offset withdrawals. Farside data indicates approximately 6.1 million dollars in net inflows across five days.
BlackRock’s IBIT led the positive flow on Thursday. Ether and XRP funds continued losing money during the same period. This divergence highlights that broader crypto ETF demand remains inconsistent.
Interest Rates Raise Opportunity Costs
The Federal Reserve raised its benchmark rate to 3.75 percent on September 16. This move increases returns on interest-bearing assets. Bitcoin does not pay interest, raising its opportunity cost for holders.
Grayscale views the increase as a limited adjustment within the cycle. They distinguish this from the prolonged tightening that began in 2022. Green believes demand can remain resilient despite these higher rates.
Regulatory Clarity Drives Future Demand
Green expects clearer U.S. rules to attract pension funds and wealth managers. The CLARITY Act failed to advance to floor debate on September 15. This procedural setback leaves the market-structure framework unresolved for now.
The executive predicts the next demand wave could dwarf current flows. He argues that every dip bought strengthens the case for a higher floor. This view is reported by cryptonews.net.
