US-listed spot Bitcoin exchange-traded funds (ETFs) have attracted nearly $2.9 billion in net inflows over a seven-day streak, signaling a robust return of investor confidence following August's selloff. On September 16 alone, these products drew $292.27 million, capping a week where inflows reached $2.87 billion. This rebound starkly contrasts with the previous month, when Bitcoin ETFs lost over $750 million amid a rotation into Ethereum-based ETFs.
The shift reflects more than short-term flows. Bitwise highlighted that US-traded Bitcoin ETFs are again absorbing more capital than new Bitcoin supply entering the market, reinforcing the recovery. Nate Geraci, President of NovaDius Wealth Management, noted these funds have secured over $22 billion in inflows since January.
Institutional conviction is a key driver, with regulatory clarity and expanded offerings from major financial institutions fueling momentum. Bitwise CEO Hunter Horsley revealed one of the country's largest banks, with over $1 trillion in assets, onboarded Bitwise as an asset manager. Additionally, Bitwise's Bitcoin ETF (BITB) gained approval for use on platforms serving more than 10,000 wealth managers.
Bitcoin ETFs now dominate digital asset investments, with two ranking among the top 100 by assets under management, collectively holding $110 billion. BlackRock's IBIT, the largest, is nearing SPDR Gold Shares (GLD) in size. In contrast, Ethereum ETFs struggled, with $61.7 million in net outflows on September 16, amid regulatory uncertainties and weaker sentiment.