Bitcoin ETF inflows near $1 billion as analysts say crypto winter may be over

U.S. spot Bitcoin ETFs attracted $998.9 million in net inflows on Monday, according to SoSoValue flow data. Bitcoin rose above $86,000 to its highest level since January and briefly reached $87,360 on Tuesday. Fundstrat Head of Digital Assets Sean Farrell told Yahoo Finance that the breakout was credible and that he believed crypto winter was over. Compass Point analyst Ed Engel described crypto as being in the early stages of a new bull market, according to Yahoo Finance. The inflows were concentrated among major funds, including BlackRock's iShares Bitcoin Trust, or IBIT, Fidelity Wise Origin Bitcoin Fund, or FBTC, and ARK 21Shares Bitcoin ETF, or ARKB. IBIT had about $68 billion in net assets as of Tuesday, making it the largest spot Bitcoin ETF. FBTC had about $13.9 billion, while Grayscale Bitcoin Trust ETF had $11 billion. The renewed inflows followed roughly $450 million in outflows from Bitcoin ETFs on Sep. 15, their worst session since June. Spot Bitcoin ETFs then attracted $433 million on Sep. 18, led by FBTC and IBIT. U.S. spot Ether ETFs recorded about $143.8 million in inflows on Sep. 18, led by BlackRock's iShares Ethereum Trust, or ETHA. ETHA had about $9.2 billion in assets as of Sep. 18. Grayscale's Bitcoin Mini Trust had about $5.1 billion. Fidelity Ethereum Fund was another product identified as relevant to whether institutional crypto demand is broadening beyond Bitcoin. Nansen senior research analyst Nicolai Sondergaard attributed the rally to renewed ETF demand and a large short squeeze, according to Yahoo Finance. Nearly $919 million in crypto short positions were reportedly liquidated during the surge, based on Coinglass data cited by Investor's Business Daily. Continued creations in IBIT, FBTC and ARKB would provide evidence of ongoing investor demand after the short-covering wave fades. The article said the key uncertainty is whether the near-$1 billion Bitcoin ETF inflow marks the beginning of a sustained trend or a rebound strengthened by short covering.