Next week’s rate cut to unleash billions in daily inflows for Bitcoin ETFs

Group 1 - U.S. spot Bitcoin ETFs experienced over $1 billion in net inflows in the past week, coinciding with Bitcoin prices remaining strong above $110,000, indicating a potential test of supply and demand dynamics if the Federal Reserve cuts rates [1][2] - Farside Investors reported a total of $741.5 million in inflows, with Fidelity's FBTC at $299.0 million and BlackRock's IBIT at $211.2 million, reflecting significant interest in Bitcoin ETFs [2][6] - The recent inflow of $757 million translates to approximately 6,640 BTC, which represents nearly 15 days of new issuance at the post-halving rate of about 450 BTC per day [3][4] Group 2 - The upcoming Federal Reserve policy decisions are critical, with a Reuters poll indicating a 25 basis point cut anticipated on September 17, which could further stimulate demand for Bitcoin [4][5] - The supply side of Bitcoin has become more predictable post-halving, with the current block subsidy set at 3.125 BTC and an average of 144 blocks mined daily, establishing a limit on organic supply available for ETF demand [7][8] - The SEC's approval of in-kind creations and redemptions for crypto ETPs has improved the operational mechanics of Bitcoin and ether products, aligning them with traditional commodity ETPs [8]