Market Sees $2 Billion in Crypto Funds Due to Rate Cut Rumors

With investment funds seeing an unprecedented rise in intake, the bitcoin market is teeming with fresh hope. The top digital asset management, CoinShares, announced a record-breaking $2 billion inflow into cryptocurrency funds in only one week, outstripping the net inflows for the whole month of May.

The total assets under management (AUM) in crypto funds have re-entered the $100 billion range, a level not seen since March 2024, thanks to this upward trend that has persisted for five weeks in a row.

Putting Gas in the Engine: Bitcoin ETFs

Investors are mostly interested in Bitcoin since it is the unrivaled leader of cryptocurrencies. Market mood is being driven in large part by the recent launch and consistent inflows into US-approved spot Bitcoin ETFs.

On June 4th, these exchange-traded funds had their third-largest inflow day ever, with $890 million flowing into them. These funds enable investors to hold Bitcoin without really owning the digital currency.

The increasing interest in Bitcoin ETFs indicates a need for more accessible and regulated entry points into the cryptocurrency market, which might appeal to a wider audience of investors.

Altcoins Show Potential, Ethereum Shines Bright
Even though Bitcoin is getting all the attention, Ethereum, the second-largest cryptocurrency, is having a great run as well. Funds for Ethereum had their biggest week since March 2024, raking in roughly $70 million.

In addition to the two most valuable cryptocurrencies, altcoins such as XRP and Fantom are seeing a boom in investment, with 1.4 million and $1.2 million, respectively. There may be a resurgence of investor trust in the crypto ecosystem, as seen by this wider market involvement.

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