Digital asset investment products experienced a second consecutive week of inflows this month, with investors contributing $321 million to the sector, according to CoinShares’ latest weekly report.
Increased Assets Under Management
This influx raised the total assets under management (AuM) for crypto exchange-traded products (ETPs) by 9%, reaching a total of $85.8 billion. Overall investment product volume also rose to around $9.5 billion.
Federal Reserve’s Impact
James Butterfill, head of research at CoinShares, attributed this positive trend to the Federal Reserve’s recent interest rate cut of 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 Leads Investment Flows
A detailed analysis of the inflows revealed that Bitcoin-based investment products dominated, generating $284 million in net gains globally last week. Major crypto funds from firms such as BlackRock, Bitwise, Fidelity, ProShares, and 21Shares collectively contributed to this rebound, adding $321 million in net inflows.
Despite a bullish sentiment for Bitcoin, bearish investors allocated $5.1 million to short-Bitcoin funds.
Ethereum and Solana Trends
Ethereum, however, faced its fifth consecutive week of outflows, amounting to $29 million. This decline is largely due to continued withdrawals from Grayscale’s ETHE product and waning interest in new offerings.
According to Farside data, ETHE experienced outflows ranging from $13 million to $18 million over three consecutive days last week, overshadowing minor inflows from other products like Grayscale’s Mini-Trust.
Conversely, Solana continued its positive momentum, attracting $3.2 million in inflows last week. This growth is linked to announcements from various traditional financial institutions planning to launch services on the Solana network during the recent Solana Breakpoint event in Singapore.
Regional Contributions
Other large-cap altcoins, such as XRP and Litecoin, saw a combined inflow of $300,000. Regionally, the US emerged as the primary contributor to last week’s inflow, accounting for $277 million, followed by Switzerland with $63 million.
In contrast, Germany, Sweden, and Canada recorded outflows of $9.5 million, $7.8 million, and $2.3 million, respectively.
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