Bitcoin's renewed market strength reflects growing institutional participation, according to Devere Group CEO Nigel Green, who argues that regulated investment products are attracting longer-term capital rather than leveraged speculation.
"The market's momentum has flipped, and this time there's serious institutional money behind it," Green said on September 21. "Billions are flowing into regulated bitcoin products week after week. It's patient capital that plans to stay, a very different animal from the leveraged speculation that fuelled past rallies."
ETF Flows Show Mixed but Positive Trend
U.S. spot bitcoin exchange-traded funds drew $433 million in net inflows on September 18, following $159.5 million the previous session. However, these gains only narrowly offset withdrawals of $746.3 million on September 15 and 16, resulting in approximately $6.1 million in net inflows across the five trading days.
The recovery began September 19, when bitcoin ETFs returned to positive flows after two consecutive sessions of withdrawals. Blackrock's IBIT led that rebound, while ether and XRP funds continued experiencing outflows, indicating that renewed demand remained concentrated in bitcoin products.
Higher Interest Rates Present Competing Dynamics
Green's case for sustained institutional demand also rests on bitcoin's fixed supply of 21 million coins, contrasting with rising public debt and central bank policy challenges. However, the Federal Reserve raised its benchmark target range to 3.75%–4% on September 16, a move that increases the opportunity cost of holding non-interest-bearing assets like bitcoin.
Grayscale characterized the increase as a limited adjustment within the broader Fed cycle, distinguishing one or two potential increases in 2026 from the prolonged tightening that began in 2022. Green maintains that demand can remain resilient despite higher rates, though both assessments represent market outlooks rather than certainties.
Regulatory Progress as a Potential Demand Driver
Green argues that clearer U.S. crypto regulation could encourage pension funds and wealth managers to increase exposure to digital assets. However, the legislative backdrop includes a setback: senators failed to advance the CLARITY Act toward floor debate on September 15 after a procedural vote fell short of the required 60 votes.
Despite this, Green expects the potential for a larger pool of institutional buyers if regulatory frameworks become more defined. "Once big allocators see rules they can work with, the next wave of demand could dwarf this one," he said, adding that volatility and pullbacks will continue as part of normal market dynamics.
