Data from analytics platform SoSoValue shows that US spot Bitcoin ETFs attracted $241.1 million in net inflows last week, extending the positive streak for spot market products to three consecutive weeks. Total cumulative net inflows across the Bitcoin ETF ecosystem have now surpassed $57.8 billion since launch. On spot exchanges, Bitcoin reacted positively to the buying pressure, hovering around $86,200 at the time of publication and maintaining a 3.7% gain over the past seven days.
The hundreds of millions of dollars flowing into institutional investment vehicles were strongly fueled by a sharp shift in the broader macroeconomic landscape.
Impact of Weak US Labor Data
The flood of inflows into Bitcoin investment products last week coincided with a US nonfarm payrolls report that landed far weaker than expected. The sluggish pace of job creation quickly altered market expectations regarding the central bank’s monetary policy path. The fragile economic backdrop rapidly pushed expectations of a Fed interest rate hike down to just 14%.
The prospect of fading yields in traditional banking naturally drove capital toward risk-on assets. Investor buying appetite appeared to remain solid. Although the psychological Crypto Fear & Greed Index dipped four points from 74 to 70, the reading still kept market sentiment firmly anchored in “Greed” territory.
Institutional Money Turns Away from Altcoins
The massive accumulation in Bitcoin did not spread to the altcoin space. Ether ETFs moved in reverse with net outflows, cutting short a brief surge in capital accumulation. Last week’s losses extended a negative run from the previous period, when the vehicles shed up to $118 million in assets. Despite the institutional exodus, retail traders managed to keep Ether (ETH) in the green, holding a 3% gain at $2,727 over the past week.
A wave of pessimism toward altcoin vehicles also hit specific utility tokens. Zcash investment products suffered a similar fate, logging their first weekly capital outflows. The divergence in capital flows - with money leaving Ether and Zcash while Bitcoin drew hundreds of millions - highlighted a cautious stance among market participants. As macroeconomic conditions showed signs of deterioration, asset managers concentrated their bets strictly on the leading crypto asset, leaving retail traders to shoulder the defense of the second-largest token alone.
Reported by Cointelegraph.
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Also read: US Jobs Data Drops Fed Rate Hike Odds to 14% - Bitcoin ETFs Absorb $134M in Early October
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
