The data show that the spot in Bitcoin ETF net inflows reached $19.2 billion last week, a marked recovery from the recurrent fluctuations of previous months. The re-flow of funds into regulated products also provides a more direct window of view of whether the market is warming up institutional demand.

IBIT absorbs most of the additional funds

The report cites data released by OKX on platform X that a combined net inflow of bitcoin ETF last week of $1.92 billion. In combination with data from other media, the IBIT in Beled remains the main recipient.

The Motley Fool mentioned that IBIT attracted $693 million in inflows during the first week of August and recorded a single-day net inflow of $503 million on 20 August. This is a strong round of gold use by the Fund since mid-April and an indication that the round-up is not a single-day pulse.

The expansion of ETF financial flows has been given more attention in a context where the overall encrypted market is still not active. Markets are generally seen as a sign of a return to the willingness of institutions to deploy, not just as a result of short-term transactions.

Bitcoin was close to $80,000.

The return of funds was accompanied by a marked improvement in the price of bitcoin. Reports indicate that the BTC experienced a cumulative increase of about 22 per cent on 27 August, following the announcement by the United States Treasury Department on 19 August that it would double the scale of long-term national debt buy-backs from 9 September.

This policy is expected to lead to a fall in the rate of return on United States debt and to a shift in some funds towards risk and scarce assets. Gold rose by about 5 per cent over the same period, down from bitcoin. It was also mentioned that empty patches may have magnified the boom.

Derivative indicator to the next observation point.

As demand for spot ETFs rebounded, the market focus was shifting to derivatives such as futures and options. Dealers are now focusing on unsettled contracts and financial rates to judge whether the round will continue to be channelled to the leverage market.

If unsettled contracts and financial rates go up rapidly at the same time, this usually means that multiple leverages are accumulating and short-term fluctuations can be magnified. If ETF inflows slow and leverage positions remain high, the risk of market retreat increases.

In the current structure, the return of ETF funds is providing new price support for bitcoin. The continuation of this round will depend on the continuation of capital inflows and the continued warming of derivative market leverage following the launch of the dollar debt buy-back in September.