Bitcoin Tops $86,000 as Spot ETF Inflows Approach $1 Billion; Ether ETFs Also See Fresh Demand

Bitcoin traded around $86,500 on Wednesday, extending a breakout that has been reinforced by a sharp pickup in U.S. spot ETF demand and a broader rebound across crypto markets. The token hit $87,395 earlier this week, its highest level since January. U.S. spot Bitcoin ETFs pulled in $998.95 million on September 21, according to SoSoValue. The surge marked the largest single-day inflow since October 2025, following a $433 million inflow on September 18 after a softer stretch for digital-asset products. BlackRock's iShares Bitcoin Trust (IBIT) led the day with $381.4 million in net inflows. ARK 21Shares Bitcoin ETF (ARKB) added $289.1 million, while Fidelity Wise Origin Bitcoin Fund (FBTC) took in $238.8 million. Together, the three products accounted for most of the reported inflows, highlighting demand concentrated in the largest funds. The move also coincided with heavy short-covering across crypto. Nearly $919 million in crypto short positions were liquidated during the latest upswing, according to figures cited by Investors Business Daily, adding forced buying to the impact of stronger ETF flows. Ether ETFs Gain Momentum Ether has participated in the rebound as spot Ether ETF flows improved alongside Bitcoin's rally. U.S. spot Ether ETFs recorded about $143.8 million of inflows on September 18, snapping three straight sessions of redemptions, with BlackRock's iShares Ethereum Trust responsible for most of the day's intake, per SoSoValue. The category then posted roughly $270 million in net inflows on September 21, its strongest single-day result since October 2025. Ether recently traded near $2,773, tracking the broader market recovery. While Bitcoin still represents the bulk of U.S. spot crypto ETF assets, stronger creations across both Bitcoin and Ether products could help clarify whether the latest demand can hold once liquidation-driven buying subsides. Daily flows remain volatile. Diversification Debate, and What Markets Watch Next The price action comes as investors continue debating diversification and U.S. dollar exposure. Howard Marks has argued that shifting from U.S. equities into dollar-denominated cash or bonds does not eliminate currency-linked risk, pointing instead to alternatives such as international equities, gold, and real estate. Gold ETFs including SPDR Gold Shares and iShares Gold Trust offer exposure to physical bullion rather than another dollar-denominated security. International equity funds such as Vanguard Total International Stock ETF provide access to companies outside the United States. Real-estate exposure, including U.S. and international REIT ETFs, is another diversification channel, though it remains sensitive to interest rates and macro conditions. For crypto, attention is now on whether ETF demand stays elevated after Monday's near-$1 billion Bitcoin inflow. One strong session is not enough to establish a durable trend. Markets will be watching continued ETF creations, sustained spot demand, and a reduced reliance on short-liquidation dynamics as the next phase unfolds. This article was originally published as "Bitcoin Roars Back: ETF Demand Explodes as Investors Hunt for the Next Bull Market" on Crypto Breaking News.