Bitcoin ETF Inflows Hit $642M Ahead of Fed Rate Cut, Tracking Gold’s Rally

• Bitcoin ETFs pull $642 million in single day, assets hit $153 billion mark.
• Gold ETFs still ahead with 40% yearly gains, Fed cut decision driving volatility.

Spot Bitcoin exchange-traded funds are regaining momentum with a strong wave of institutional money entering the market. On Friday alone, inflows reached $642.35 million, which extended the streak of gains to five consecutive days, according to SoSoValue data.

Cumulative inflows now stand at $56.83 billion, while total assets under management have climbed to $153.18 billion. That figure represents 6.62% of the entire Bitcoin market capitalization, a sign that larger players are building positions with confidence.

Fidelity’s FBTC took the lead for the day by attracting $315.18 million, while BlackRock’s IBIT followed closely with $264.71 million. The total spot trade volume across the entire Bitcoin ETFs exceeded $3.89 billion, showing more solid market activity and deeper institutional participation.

Gold Rally Keeps Pressure on Bitcoin

In the past five trading days, Bitcoin ETFs attracted $2.34 billion in new money. The swift upsurge comes after a slow start of the month and reflects sentiment is improving as economic signals begin to stabilize. IBIT and FBTC appreciated by more than 2% in the prior session.

While Bitcoin’s spot products are showing progress, the competition from Gold remains firm. Gold ETFs remain in the top spot by pulling in more inflows during uncertain market times. Ecoinometrics reports that gold continues to beat Bitcoin in ETF allocations as a safe-haven asset.

Gold has already gained around 40% in the first eight months of the year, far ahead of Bitcoin’s pace. Despite renewed crypto inflows, the rally in precious metals continues on expectations of a weaker US Dollar and broader macroeconomic concerns.

Fed Rate Cut Expectations in Focus

Attention now shifts to the Federal Reserve,  which will announce its rate decision on September 17. A Reuters survey found that 105 out of 107 economists expect a 25 basis point cut, taking the benchmark range to 4.00%–4.25%. More rate cuts are likely in the last quarter of the year.

Political pressure made the matter more interesting, as US President Donald Trump openly asked for a big cut of 100 basis points. Still, the financial markets clearly expect a smaller cut. Analysts caution that uncertainty over the Fed’s stance could continue to drive volatility.

Currently, Bitcoin’s price is hovering around $116,000, up nearly 1% in the past 24 hours. Market watchers identify the $118,000 mark as the critical level that would confirm more upside. The pre-policy meeting inflows show investors are hedging against possible changes in monetary conditions.

Additionally, CNF recently reported that BlackRock is considering the use of tokenized ETFs for real assets. The products would enable 24/7 trade and participation in the decentralized financial system, but regulatory hurdles persist in putting this idea in check.