U.S. spot Bitcoin ETFs have attracted approximately $5.3 billion in new capital since the Treasury Department announced an expansion of its long-dated bond buyback program in mid-August. This surge marks a significant reversal for the sector, which had struggled with a multi-billion dollar deficit earlier this summer.
The influx of capital, highlighted by analyst Nate Geraci, signals a renewed appetite for digital assets as broader market conditions shift. During the week ending September 25, these funds saw an impressive $2.4 billion in net inflows. This momentum peaked on Monday with a $999 million intake—the ninth-largest single-day performance since the ETFs launched in January 2024.
BlackRock’s iShares Bitcoin Trust spearheaded the rally, securing roughly $1.2 billion during the five-day window. Fidelity and ARK 21Shares also posted substantial gains, while Morgan Stanley’s fund recorded its strongest weekly performance since its April debut. These figures have successfully pushed 2026 year-to-date flows back into positive territory, recovering from a deep $5.8 billion hole that persisted through July.
While the timing of the ETF recovery aligns with the Treasury's August 19 announcement to double bond buyback limits to $4 billion per operation, market observers remain cautious about drawing a direct causal link. The Treasury maintains that these operations are strictly liquidity-support measures for government debt markets. Nevertheless, the correlation between the policy adjustment and the subsequent risk-on sentiment in crypto markets has been a primary focal point for institutional analysts monitoring the asset class.
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