Wall Street pours $872M into Bitcoin and Ether ETFs

US spot Bitcoin and Ether ETFs attracted $872.2 million on Sept. 3 as Bitcoin climbed above $81,000 and Ether passed $2,500. Bitcoin funds recorded $730.8 million of the inflows, with roughly $454 million directed to BlackRock’s IBIT. Ethereum ETFs added $141.4 million.

Inflows were concentrated among a few issuers. ARK 21Shares’ ARKB recorded $137.7 million of new money and Fidelity’s FBTC drew $74.4 million. For Ethereum, BlackRock’s ETHA and Fidelity’s FETH together accounted for about $137.2 million of the category’s net inflow.

Derivatives data showed Bitcoin futures open interest rose above $57 billion, the highest level since May. More than $260 million of short positions were liquidated during the price advance, the largest single-day short squeeze since Aug. 21.

ETF flows moved sharply across the first days of September. Bitcoin ETFs swung from a $236.5 million outflow on Sept. 1 to a $101.1 million inflow on Sept. 2, then to the $730.8 million inflow on Sept. 3. Ethereum funds posted a $48.2 million outflow on Sept. 2, ending a 12-session inflow streak, before returning to net inflows on Sept. 3.

Simon-Peter Massabni, head of business development at XS.com, commented: ‘Flows of that size absorbed substantial sell orders and helped lift spot prices despite rising sovereign bond yields in the US and Japan.’

Since their approvals, US spot Bitcoin and Ether ETFs have provided a channel for institutional exposure to the two largest cryptocurrencies. Large daily inflows and outflows into those funds now coincide with notable shifts in spot prices and derivative positioning.