Bitcoin ETFs have experienced their strongest week of inflows since July 22, with global Bitcoin exchange-traded products (ETPs) logging a net intake of 20,685 BTC. This surge, driven primarily by U.S.-listed funds, has pushed the combined holdings of U.S. spot Bitcoin ETFs to 1.32 million BTC, a new peak.
The increased demand is largely attributed to investor anticipation of the Federal Reserve's first interest rate cut, which is expected to be announced at the upcoming Federal Open Market Committee (FOMC) meeting. According to André Dragosch from Bitwise Investments, ETF inflows have become a key determinant of Bitcoin's performance, and their influence is at an all-time high.
Analysts also noted a "re-rotation" of capital from Ethereum ETFs back to Bitcoin, as investors favor BTC in the lead-up to the macro event. Last week, ETF inflows outpaced the growth of new Bitcoin supply by nearly nine times. Leading the charge was Fidelity’s FBTC, which accounted for $843 million in net inflows, or about 36% of the total.
Despite the strong inflows and price gains, Bitcoin's volatility remains historically low. K33 Research noted that the seven-day volatility fell to yearly lows, and implied volatility in options markets is also near multi-year lows. The market is now looking to the Fed's decision, as a rate cut could provide further support for the ongoing Bitcoin rally.
September 2025, Cryptoniteuae