Crypto investment products received $533M in weekly inflows from August 18 to August 24.
This was driven by expectations of US interest rate reduction in September.
Concerns about possible imminent interest rate reduction in September have led cryptocurrency investors to buy more crypto-related exchange-traded products (ETPs). On August 26, the cryptocurrency investment business CoinShares stated that digital asset investment products received $533 million in weekly inflows from August 18 to August 24.
Inflows into exchange-traded funds (ETPs) linked to cryptocurrency reached a five-week high last week, driven by expectations of US interest rate reduction. The first possible interest rate reductions might take place in September 2024, according to US Federal Reserve Chair Jerome Powellâs comments on August 21.
Investors Optimistic
Last week, out of all the crypto investment products tracked by CoinShares, $543 million went into ETPs associated with Bitcoin. With $318 million in inflows last week, BlackRockâs iShares Bitcoin Trust (IBIT) was the most prominent buyer.
Outflows of $36 million were recorded for crypto investment products linked to Ether within the same time period. Grayscale Ethereum Trust (ETHE) outflowed $118 million, offsetting the purchasing, even while new ETH ETF issuers continued to experience inflows.
Since their inception on July 23, the new Ethereum ETFs have received $3.1 billion, despite huge withdrawals from the Grayscale Ethereum Trust. The outflows from Grayscaleâs ETHE, which unloaded $2.5 billion over the time, largely cancelled out the inflows.
The first-time crypto inflows have surpassed $500 million in five weeks, but still fell far short of surpassing previous highs. In 2024, the biggest influx of funds occurred between March 11 and March 17, just after the price of Bitcoin hit a record high of $73,600 on March 14.
Highlighted Crypto News Today:
Bitcoin Runes Hits 15.6 Million Transactions in First 4 Months
