The post Surge in Popularity for American Bitcoin ETFs as Federal Reserve Meeting Approaches appeared on BitcoinEthereumNews.com.

Investors have rekindled their interest in Bitcoin exchange-traded funds (ETFs) and other crypto investments last week, coinciding with an important meeting of the Federal Reserve. Jersey-based digital asset manager CoinShares reported Monday that $436 million flowed into funds exposed to cryptocurrencies. “We believe the surge in inflows towards the end of the week was driven by a significant shift in market expectations for a potential 50 basis point interest rate cut on September 18th,” CoinShares noted. Significant capital returns to Bitcoin ETFs as markets await Federal Reserve’s decisive meeting. Surge of Investments in New American Bitcoin ETFs The new year saw the introduction of American Bitcoin ETFs by industry giants like BlackRock, Fidelity, and Grayscale after receiving green lights from the Securities and Exchange Commission (SEC). These products hit the market with massive popularity, drawing billions in investor capital. However, they later experienced notable outflows as investors scrutinized U.S. central bank policies and their implications for “risk-on” assets. Impact of Market Sentiment on Inflow Trends Last week’s reinvestment wave was mainly directed towards the American Bitcoin ETFs, indicating shifting market sentiment. The inflows seemed to be catalyzed by the anticipation of a significant interest rate cut based on comments from former NY Fed President Bill Dudley. According to the CoinShares report, the concept of a 50 basis point rate cut set for September 18th has invigorated market interest, motivating investors to reenter volatile assets like Bitcoin in hopes of higher returns. Federal Reserve’s Upcoming Meeting and Interest Rate Strategies The Federal Open Market Committee is scheduled to convene tomorrow, with a strategic announcement on interest rates expected on Wednesday. Current rates in the U.S. have hit a 23-year high, so markets are bracing for cuts after Fed Chair Jerome Powell signaled last month that it might be time for such…

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Filed under: News - @ September 16, 2024 10:19 pm