Crypto Investment Rebound: $321 Million Flows In As Fed Cuts Rates
Global investment products in the crypto sector experienced a significant rebound, attracting $321 million in net inflows for the second consecutive week, according to a report from CoinShares.
The surge in inflows was likely driven by the recent comments from the U.S. Federal Reserve, which took a more dovish stance than anticipated, including a 50 basis point interest rate cut, according to CoinShares Head of Research James Butterfill.
Bitcoin-based investment products were the primary drivers of this growth, generating $284 million in net inflows. Additionally, short-bitcoin funds saw a modest net inflow of $5.1 million, indicating some investor interest in hedging against potential downturns in Bitcoin's price.
Solana funds also reported a positive trend, adding $3.2 million in net inflows amid announcements during the Solana Breakpoint conference in Singapore.
Despite the overall positive momentum, ether-based investment products continued to struggle, registering $29 million in net outflows last week. This marks the fifth consecutive week of outflows for ether, bringing the total to $187.7 million.
Grayscaleâs higher-fee fund, ETHE, has been a significant contributor to these outflows, totaling $2.8 billion since its launch in July.
Regionally, U.S.-based funds dominated the inflows, accounting for $277 million. Swiss investment products followed with $63 million in net inflows, marking their second-largest weekly gain of the year.
Conversely, funds in Germany, Sweden, and Canada reported net outflows of $9.5 million, $7.8 million, and $2.3 million, respectively.
Total assets under management for crypto funds increased by 9%, with trading volumes rising to $9.5 billion, reflecting a growing interest in digital assets.
