Investors poured $321 million into digital asset investment products, marking the second consecutive week of inflows this month, according to CoinShares’ latest weekly report.
The influx boosted total assets under management (AuM) for crypto exchange-traded products (ETPs) by 9%, reaching $85.8 billion. Overall investment product volume also increased to approximately $9.5 billion.
James Butterfill, head of research at CoinShares, attributed this positive trend to the Federal Reserve’s recent decision to cut interest rates by 50 basis points. He stated, “This surge was likely driven by the Federal Open Market Committee (FOMC) comments last Wednesday, which took a more dovish stance than anticipated, including a 50 basis point interest rate cut.”
Bitcoin Dominates Flows
Bitcoin-based investment products led the inflows, generating $284 million in net gains globally last week. Major crypto funds from firms like BlackRock, Bitwise, Fidelity, ProShares, and 21Shares contributed to this rebound, collectively adding $321 million in net inflows.
Investors with bearish sentiment also allocated $5.1 million to short-Bitcoin funds due to positive price momentum for Bitcoin.
Ethereum faced its fifth consecutive week of outflows, totaling $29 million. The trend is attributed to ongoing withdrawals from Grayscale’s ETHE product and declining interest in new offerings.
According to Farside data, ETHE experienced outflows between $13 million and $18 million for three straight days last week, overshadowing minor inflows from other products, including Grayscale’s Mini-Trust.
Solana added $3.2 million in inflows last week, maintaining a positive trend associated with traditional financial institutions announcing plans to launch financial services on the network during the latest Solana Breakpoint event in Singapore.
XRP and Litecoin saw combined inflows of $300,000, while the US emerged as the leading contributor to last week’s inflow with $277 million, followed by Switzerland with $63 million.
Germany, Sweden, and Canada experienced outflows of $9.5 million, $7.8 million, and $2.3 million, respectively.
