See record gains when investors buy Bitcoin and Ethereum ETFs

Bitcoin and Ethereum ETFs (exchange-traded funds) recorded their biggest multi-week inflows during the session on Friday, September 27. This comes amid ongoing talk of a recovery in the crypto market.

With a history of unwanted returns in September, historically Bitcoin's worst-performing month, markets expect better prospects in October as the month draws to a close.

Crypto ETFs are the highest in the week

Crypto investors bought 7,526 Bitcoin (BTC) and 22,310 Ethereum (ETH) on Friday, bringing in $494.4 million and $58.7 million for Bitcoin and Ethereum ETFs, respectively.

Spotonchain, an on-chain analytics tool, reports that these flows represent the levels of the total weekly flows seen in previous weeks. Notably, the Bitcoin (BTC) ETF recorded positive inflows totaling $1.11 billion, marking the largest weekly inflow since July 19.

On the other hand, the Ethereum (ETH) ETF had inflows totaling up to $84.6 million between Monday and Friday, the biggest weekly gain since August 9.

Read more: How to trade Bitcoin ETF: A step-by-step approach

Data from Farside Investors confirms the report. BlackRock's IBIT ETF led the daily gains, saving $11.5 million on Monday, while Fidelity's FBTC posted $24.9 million in positive inflows.

Since their debut in the US market in January 2024, spot Bitcoin ETFs have become a magnet for institutional investors. They offer direct portfolio inclusion of Bitcoin, bypassing the challenges of direct purchase and secure storage.

As BeInCrypto reports, more than 1,000 institutional investors have filed over two 13F filing periods. This shows how the market response to BTC ETFs has been extremely positive.

Meanwhile, in the ETH ETF market, All issuers are struggling as the financial instrument continues to underperform. However, accumulating positive flows for both markets is not easy..

It comes as investors continue to bet on the crypto market's recovery, with Bitcoin holding above $65,500.

Bitcoin's price strength is closely tied to broader economic indicators that point to increased liquidity. Such engagement often benefits Bitcoin due to its sensitivity to fluid changes. For starters, China is considering fiscal aid for its citizens in a struggling economy. Similarly, the US Federal Reserve recently cut interest rates, which is usually good for riskier assets.

Various economists, including macro researcher Julian Bitel, have commented on the rising liquidity.

“Liquidity is rising again, and Bitcoin – being extremely sensitive to changes in liquidity conditions – has the ability to move explosively as fresh liquidity enters the system. The macro environment is changing. A major liquidity wave is now on the horizon, and when it hits, Bitcoin will be higher in Q4.” It seems like there is going to be a strong push,” Bittel said.

Similarly, the Global Money Index (GMI) also shows the increasing amount of money. This measure measures the amount of money between consumers and banks.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

An increase in the GMI usually indicates that more funds are circulating and available for spending. This may lead to an increase in Bitcoin purchases.