US spot Bitcoin and Ethereum ETFs drew $1.20 billion in net inflows during the week ending Sept. 4, with Bitcoin funds accounting for more than 80% of the total as investor demand remained positive across the broader market.

According to data from Farside Investors, spot Bitcoin ETFs collected $986.7 million over the five trading sessions, about 6.7% higher than the $924.5 million recorded in the previous five sessions.

Bitcoin funds opened the week with $216.7 million in net inflows on Aug. 31, then posted $236.5 million in outflows on Sept. 1, before buying returned over the final three sessions.

BlackRock Drives Weekly Bitcoin ETF Inflows

The next three days produced inflows of $101.1 million, $730.8 million, and $174.6 million. Sept. 3 was the strongest session by a wide margin, contributing about 74% of the weekly total.

BlackRock's spot Bitcoin products took in $454 million on Sept. 3. ARK Invest and 21Shares' ARKB added $137.7 million, while Fidelity's FBTC and Grayscale's Bitcoin Mini Trust drew $74.4 million and $48.8 million respectively.

BlackRock also led the full week with about $691.5 million in net inflows. ARKB followed with $137.7 million, and Fidelity's fund recorded $94.8 million.

Bitwise's BITB received $41.7 million during the period. VanEck's HODL recorded about $33 million in net withdrawals, while Grayscale's converted GBTC fund posted an $18.6 million inflow.

Cumulative net inflows for US spot Bitcoin ETFs reached about $55.69 billion, according to Farside Investors. That figure has accumulated since the products launched in January 2024, when US regulators approved spot Bitcoin ETFs after years of rejections, opening regulated exchange-traded exposure to Bitcoin for mainstream brokerage and retirement accounts.

Ethereum funds also ended the week with positive flows. Farside data shows US spot Ethereum ETFs recorded $215.3 million in net inflows, a result about 73.6% lower than the $815.7 million recorded during the prior week.

Ethereum ETFs Post $215.3 Million in Weekly Inflows

Ethereum products started with $87.6 million in inflows on Aug. 31 and added $8.6 million on Sept. 1, before recording $48.2 million in outflows on Sept. 2.

Buying strengthened on Sept. 3, when Ethereum ETFs attracted $141.4 million. Another $25.9 million entered the products on Sept. 4, leaving the category with a positive weekly result.

BlackRock's ETHA generated $136.4 million in weekly inflows, while its staked ETH product, ETHB, contributed an additional $81.8 million, for a combined $218.2 million. That combined figure slightly exceeded the category's total net inflow of $215.3 million because withdrawals from other Ethereum products offset part of the gains.

Fidelity's FETH showed a net inflow of $4.7 million, having gained $65.1 million on Sept. 3 and then lost $48.3 million in the following session.

Grayscale's higher-fee ETHE posted a weekly outflow of $37 million, while its lower-cost Ethereum Mini Trust received $17.1 million in inflows. The contrast between the two Grayscale products continued a pattern seen since the Ethereum ETFs began trading in July 2024, with investors favoring lower-fee vehicles over the converted higher-fee fund.

Cumulative net inflows into US spot Ethereum ETFs reached about $13.19 billion by Sept. 4. Ethereum demand remained positive even as its pace slowed sharply.

ETF Inflows Rose Despite Market Caution

The latest crypto ETF inflows came during a cautious period for traditional US investment funds. According to LSEG Lipper data cited by Reuters, US equity funds saw $11.12 billion in withdrawals during the week ending Sept. 2, with large-cap funds accounting for $7.52 billion of the outflows. Meanwhile, money market funds pulled in $48.76 billion as investors shifted toward those products.

Reuters linked the caution to higher bond yields, higher oil prices, and tensions in the Middle East. These factors weighed on risk assets early in the week before sentiment turned positive on Sept. 3.

According to CNBC, Federal Reserve Governor Christopher Waller said he would support holding rates steady if inflation kept easing. The comment coincided with the day Bitcoin and Ethereum ETFs saw their highest inflows of the week, with the two categories recording about $872.2 million combined on Sept. 3.

Bitcoin moved above $81,000 while Ethereum recovered toward $2,500, though the price rise did not persist into the next trading session. Despite the price movements, new flows continued into crypto ETFs on Sept. 3.

Inflation and Fed Policy in Focus

At the time of writing, Bitcoin was trading around $79,665, down 1.83%, while Ethereum traded around $2,455, down 2.61%.

ETF inflows do not reduce the market's short-term riskiness; price movements depend on changes in the economic outlook and US monetary policy.

US labor data have become another key factor for investors to watch. The Bureau of Labor Statistics reported an increase of 162,000 nonfarm payroll jobs in August, with the unemployment rate at 4.1%, indicating a robust labor market. A strong economy may give the Fed additional room to keep borrowing costs high.

Investors are now awaiting the CPI report due Sept. 11, with the Federal Reserve also expected to make a policy decision on Sept. 16. Persistent inflation could weigh on cryptocurrency prices and ETF inflows in the coming periods, while softer inflation data could support expectations for stable or lower interest rates.

The weekly crypto ETF flows reflected continued buying in both of the two largest spot crypto ETF categories. Bitcoin ETFs extended gains from the prior week, while Ethereum ETFs stayed positive despite the sharp slowdown.

Sources: Farside Investors (BTC), Farside Investors (ETH), Reuters, CNBC, BLS