U.S. spot bitcoin exchange-traded funds registered $517.19 million in net inflows on Wednesday, marking the biggest single-day intake in nearly three and a half months, as the broader cryptocurrency market staged a sharp rebound.
According to data from SoSoValue, eight of the 12 spot bitcoin funds closed the session in positive territory. BlackRock’s IBIT led the pack with $284.7 million in inflows, followed by Ark & 21Shares’ ARKB at $77.7 million and Fidelity’s FBTC at $62.4 million. The combined figure was the strongest since May 4, snapping a run of muted and choppy flows that stretched through the summer.
Analysts pointed to a cluster of macro and regulatory catalysts as the trigger behind the renewed institutional appetite.
Treasury Buyback Expansion Reignites Risk Appetite
On Wednesday morning, the U.S. Department of the Treasury announced it would at least double the size of its liquidity support buyback operations for longer-dated nominal coupon securities across the 10- to 30-year segment. The move is designed to cap Treasury yields and improve market functioning, and it sent immediate ripples through risk assets.
Bitcoin BTC pushed above $69,000 for the first time in two months, while ether ETH reclaimed the $2,100 level in a broad-based crypto rally.
SEC Adds Regulatory Tailwind
Sentiment was further boosted by a fresh policy signal from Washington. On Tuesday, the U.S. Securities and Exchange Commission proposed a rule that would carve out two tailored exemptions for certain crypto investment contracts. Under the draft framework, issuers could raise to $5 million over four years, or up to $75 million annually, subject to disclosure requirements.
The proposal is being read as one of the more constructive regulatory openings for token issuers in recent memory, and analysts said it added a layer of confidence for larger allocators sizing up crypto exposure.
Institutional Positioning, Not Retail FOMO
Rachael Lucas, crypto analyst at BTC Markets, said the character of the flows suggests longer-horizon capital rather than speculative retail activity.
“After the heavy outflows seen in May-June and more choppy flows through parts of July and mid-August, a print of this size signals that larger allocators are once again treating current levels as constructive entry points or adding on strength,” Lucas said. “It is not opportunistic day-trading money; these are typically longer-horizon allocations from players who have the compliance frameworks and balance-sheet capacity to move size.”
Both Lucas and Mei cautioned, however, that flows of this magnitude are unlikely to be sustained daily.
“A lot depends on whether the buybacks are a one-off move or an ongoing initiative. This depends on inflation and how the U.S.-Iran conflict will evolve,” Mei said. “The catalysts we’re watching for are next week’s CPI data and any commentary from Bessent on whether this buyback strategy will be sustained over a longer period.”
Broader Market Extends Gains
The rally has carried into Thursday’s session. Bitcoin was trading around $69,564, up 8.3% on the day, while ether climbed nearly 18% to $2,251. XRP and Solana both added roughly 10%, with the overall crypto market capitalization rising about 8%.
Hyperliquid’s HYPE featured among the day’s biggest movers, jumping more than 23% after President Donald Trump publicly said that CFTC Chair Michael Selig is working to bring the perpetuals-focused trading platform into the United States in a “fully compliant and legal fashion.” Rival perp DEX Lighter’s LIT token followed suit, climbing 23.5% over the past 24 hours to $2.84.
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