U.S. spot Bitcoin ETFs attracted $608 million in a single day while Ether exchange-traded funds recorded their largest daily inflow since October, as a Treasury-driven short squeeze drew fresh institutional capital into crypto markets.
The Bitcoin ETF haul marked one of the strongest single-day performances since early May, bringing the week’s cumulative inflows into focus as the benchmark cryptocurrency held above $77,000. BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin fund led the gains, according to SoSoValue flow data.
Ether Funds Surge as Capital Rotates
On the Ethereum side, spot Ether ETFs posted their strongest daily showing in nearly ten months, with BlackRock’s iShares Ethereum Trust (ETHA) again serving as the primary conduit for institutional demand. The flows reflected a broader rotation into Ethereum as the token reclaimed $2,400 for the first time since the spring selloff.
The surge in Ether ETF activity comes after CoinDesk and Cointelegraph reported that Ethereum treasury firms had accumulated 2.3 million ETH, or 1.9 percent of circulating supply, since June. Combined with ETF acquisitions that now represent 3.8 percent of supply, institutional demand is increasingly absorbing available Ether on exchanges.
Treasury Buyback Catalyst
The ETF inflows were supercharged by the U.S. Treasury’s decision to at least double its long-end bond buybacks from $2 billion to $4 billion per operation, effective September 9. The announcement drove long-term yields lower and triggered a $2.7 billion short liquidation wave, creating a favorable macro backdrop for risk assets.
Analysts at XBO noted that the rally was driven by narrative rather than direct liquidity injection, but the mechanical effect on positioning was undeniable. Spot delta remained negative, suggesting profit-taking at current levels even as leveraged shorts were flushed out.
The sustained ETF demand, however, provides a structural bid beneath the market. Previous Treasury-driven rallies in 2022 and 2023 faded once the catalyst passed, but this cycle features an institutional floor that did not exist in prior years.
Market participants are now watching whether the momentum carries into next week, with the September 9 buyback implementation date serving as the next potential catalyst for sustained flows.
Sources: SoSoValue; Cointelegraph; CoinDesk; XBO Research; Coinglass
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