Bitcoin ETFs See Strong Inflows While Altcoin ETF Demand Slows
US-listed Bitcoin ETFs recorded net inflows of $986.9 million for the week ending September 4, a 6.7% increase from the previous week according to CoinGlass data. This marks a reversal in investor behavior compared to the prior week when altcoin ETFs saw significant gains. In contrast, Ethereum, Solana, XRP, and Hyperliquid ETF inflows dropped between 73% and 96%. Despite this shift, none of the altcoin funds turned negative; rather, demand appears to be slowing down instead of reversing entirely. Bitcoin's price rose by 2.58% over five days, reaching its highest level since May 12, while overall trading activity declined with Bitcoin fund turnover falling from $19 billion to $14.5 billion and Ethereum ETF turnover dropping to $4.1 billion. Mixed macroeconomic signals emerged during the week: dovish comments by Federal Reserve Governor Christopher Waller supported Bitcoin’s price rise, but a strong employment report raised expectations for potential rate hikes. BlackRock's IBIT led inflows into US spot Bitcoin ETFs with total assets reaching nearly $987 million according to Farside Investors. Despite diverging flows between Bitcoin and altcoin ETFs, prices across all five major digital currencies remained relatively stable or slightly increased over the week.
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