Bitcoin Could Extend Rally as ETF Inflows Hit $517M: Expert

US spot Bitcoin (CRYPTO: $BTC) exchange-traded funds (ETFs) recorded $517.2 million in net inflows on Wednesday, their largest single-day investment since May 4, as Bitcoin rallied alongside renewed attention on US crypto regulation and financial markets.

The latest inflows pushed August's total to $1.47 billion. The funds have attracted about $1 billion since Monday, putting them on pace for their strongest weekly net inflow since the week ended Jan. 16, when they brought in roughly $1.42 billion, according to data from SoSoValue.

Spot Ethereum (CRYPTO: $ETH) ETFs also recorded strong demand, with $189.2 million in net inflows on Wednesday, bringing their weekly inflows to about $291.5 million.

The ETF inflows came as the US Treasury announced an expansion of its buybacks of longer-dated government debt. The move was accompanied by declines in Treasury yields and the US dollar, while gold and silver outperformed equities.

Crypto markets also received renewed regulatory attention after President Donald Trump urged Congress to advance the CLARITY Act during a White House event.

Simon-Peter Massabni, head of business development at XS.com, told Cryptoprowl that the return of institutional capital is one of the most important factors to watch as Bitcoin attempts to recover.