Crypto funds at asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares returned to net inflows of $436 million globally last week, according to CoinShares, after two consecutive weeks of net outflows.
“We believe the surge in inflows towards the end of the week was driven by a significant shift in market expectations for a potential 50 basis point interest rate cut on September 18,” CoinShares Head of Research James Butterfill wrote in a Monday report, following comments from former Federal Reserve Bank of New York President Bill Dudley last week.
However, trading volume remained flat for the week at $8 billion — well below the $14.2 billion average for 2024, Butterfill noted.
Weekly crypto asset flows. Images: CoinShares.
Bitcoin dominates as Ethereum investment products struggle
Bitcoin-based funds again led the flows, rebounding to generate $436 million in net weekly inflows after a 10-day streak of net outflows totaling $1.2 billion. Short bitcoin investment product flows also reversed, registering net outflows of $8.5 million following three consecutive weeks of inflows.
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The U.S. market also dominated, with spot Bitcoin exchange-traded funds based in the country accounting for $403.9 million in net weekly inflows alone. Switzerland and Germany-based funds also saw $27 million and $10.6 million worth of net inflows, respectively, while Canada-based products witnessed net outflows of $18 million.
Solana investment products also witnessed net inflows of $3.8 million last week — the fourth week in a row.
However, Ethereum-based funds continued to struggle, generating a further $19 million worth of net outflows last week, adding to $98 million in negative flows the week before. The ratio between bitcoin and ether dropped below 0.04 over the weekend for the first time since April 2021, according to TradingView.
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