Spot Bitcoin ETFs Witness Net Positive Inflows as Core CPI Data Sparks Optimism Across Financial Markets

Fresh optimism graced the cryptocurrency market on January 15 as spot Bitcoin ETFs recorded remarkable inflows following the release of US Consumer Price Index (CPI) data. Grayscale's Bitcoin ETF (GBTC) led the pack, closely followed by Fidelity's (FBTC), which saw a net inflow of $463 million, while Ark Invest's ARKB gained $138 million. Bitcoin's price briefly surpassed the $100,000 mark, indicating positive market sentiment.

Spot Bitcoin ETFs Experience Net Positive Inflows

This marks a shift from the previous four days of outflows, during which spot Bitcoin ETFs saw an inflow of $755 million. Fidelity's FBTC had the largest net positive flow, which had not been seen since March of the previous year. ARK Invest's ARKB also performed well, and the daily inflows increased significantly compared to the previous trading periods.

Other Bitcoin ETFs, such as Grayscale's GBTC and BlackRock's iShares Bitcoin Trust (IBIT), also joined the rally. Notably, the trading volumes at IBIT were to the tune of $2.35 billion, while for Fidelity's FBTC, the trading activity was $284 million. Overall, there were no ETFs that experienced outflows, which further strengthens the market optimism.

Core CPI Data Sparks Optimism in Financial Markets

The December CPI report presented data that was largely in line with market expectations. The annual inflation rate dropped to 3.2%, lower than market forecasts. This decline in core CPI was positive for global equity and cryptocurrency markets. The S&P 500 index rose by more than 100 points in trading and increased its market capitalization by $900 billion during the trading session.

This positive momentum extended to the cryptocurrency market, propelling Bitcoin's price past the $100,000 mark before experiencing a slight dip to $99,597. On-chain data showed that investment by wallets with 10 or more BTC was on the rise, suggesting that investors believed that the upward trend of Bitcoin was sustainable.

Bitcoin ETFs and Global Markets Implications

Interest in Bitcoin ETFs is growing as more institutions enter the cryptocurrency market. While Fidelity and BlackRock are expanding their services globally, other markets, such as Thailand, are preparing to approve their first Bitcoin ETFs. Bitwise Invest also reported that nation-states are making increasing inquiries about Bitcoin ETFs, with some considering shifting their assets from government bonds to Bitcoin.

The trading volume for the 12 Bitcoin ETFs was $3.18 billion, a significant increase from the previous trading session. The reported inflows and trading volumes are likely due to Bitcoin's increasing attractiveness as an investment asset class and the positive market conditions.