Bitcoin ETF Inflows Surge Ahead of Fed Rate Cut, Gap with Gold

TLDR

Table of Contents

Bitcoin ETF inflows hit $2.3B this week, driven by Fidelity’s FBTC and BlackRock’s IBIT funds.
$642M was added to Bitcoin ETFs on September 12, marking a major daily boost.
Fed rate cuts expected to drive further Bitcoin ETF interest, with economists predicting 3 cuts by year-end.
Gold ETFs continue to lead Bitcoin in capital inflows, with a 40% increase this year.

Bitcoin ETF inflows surged by $642 million on September 12, marking a significant jump as institutional players prepare for a potential Federal Reserve rate cut next week. Over the past week, Bitcoin ETFs have seen a rise in investments, reaching a total of $2.3 billion. This surge signals growing optimism in Bitcoin as a hedge, following the ongoing rally in gold.

Surge in Bitcoin ETF Inflows

Bitcoin ETF inflows have experienced a substantial rebound, with an influx of over $642 million in a single day. The surge occurred on September 12, signaling a renewed interest in Bitcoin from institutional investors. This follows a pattern of increasing capital flows into spot Bitcoin ETFs as traders position themselves ahead of anticipated changes in monetary policy.

Source: Trader T

A large portion of this growth is driven by two major funds: Fidelity’s FBTC and BlackRock’s IBIT. Fidelity’s FBTC led the pack with $315 million in inflows, while BlackRock’s IBIT saw a $264 million boost. As of now, both funds have registered notable gains, with their shares rising by more than 4% in the past week. BlackRock’s IBIT, in particular, saw net inflows of over 2,270 Bitcoin, contributing significantly to the daily trading volume of $3.2 billion.

Fed Rate Cuts and Market Expectations

The increase in Bitcoin ETF inflows comes as market expectations rise for a Federal Reserve rate cut at the upcoming September meeting. A Reuters survey of economists indicates that 105 out of 107 experts anticipate a 25 basis point cut, with further cuts expected before the end of the year. While the specific extent of these rate cuts remains uncertain, the broader market sentiment leans towards more accommodative monetary policies.

This outlook has prompted institutional investors to position themselves for potential shifts in the market. The consensus is that a rate cut could spur greater demand for assets like Bitcoin, which often benefits from low interest rates. As the financial community prepares for the Fed’s decision, Bitcoin ETFs are seeing an influx of capital, reflecting investor confidence in digital assets as part of a diversified portfolio.

Bitcoin vs. Gold: Catching Up in the ETF Space

While Bitcoin’s recent surge is noteworthy, it is still trailing behind gold ETFs in terms of inflows. Gold has been a dominant player in the ETF market, attracting significant capital as investors seek a safe haven from macroeconomic uncertainties. In the first eight months of 2025, gold ETFs experienced a 40% increase in capital, far outpacing Bitcoin’s performance.

Despite the rising interest in Bitcoin, the rally in gold continues, driven by expectations of a weakening US dollar and broader concerns over global economic stability. Bitcoin’s ETF inflows are catching up, but it still has a way to go before it matches gold’s status as a go-to hedge. Analysts are keeping a close eye on the performance of both assets, as Bitcoin tries to close the gap in ETF market share.

Source: ecoinometrics

As Bitcoin’s price hovers around $115,000, analysts predict that a breakout above the $118,000 level could further boost the asset’s performance. However, Bitcoin still faces challenges in surpassing gold’s sustained dominance, especially given the long-term appeal of gold during times of economic uncertainty. With the Fed’s rate decision looming, Bitcoin’s ETF market will likely continue to see fluctuations as investors react to shifting expectations and broader economic trends.

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