Digital asset investment products saw inflows for the second week in a row this month, with investors pouring $321 million into the sector, according to CoinShares’ latest weekly report.
The influx of investors has helped increase the total assets under management (AuM) of crypto asset ETPs by 9% to $85.8 billion. The total trading volume of investment products also increased to about $9.5 billion.
James Butterfill, head of research at CoinShares, linked this positive trend to the Federal Reserve’s recent decision to cut interest rates by 50 basis points.
“This surge was likely driven by comments from the Federal Open Market Committee (FOMC) last Wednesday, which took a more dovish stance than expected, including a 50 basis point rate cut,” he explained.
A breakdown of fund flows shows that BTC-based investment products led inflows, generating $284 million in net gains globally last week.
Notably, major crypto asset funds from firms such as BlackRock, Bitwise, Fidelity, ProShares, and 21Shares contributed to the rebound, with a combined net inflow of $321 million.
BTC’s positive price momentum also attracted bearish BTC investors, who poured $5.1 million into funds that shorted BTC.
Ethereum has seen outflows for the fifth week in a row, totaling $29 million. The trend stems from continued withdrawals from Grayscale’s ETHE product and declining interest in new products.
ETHE saw outflows of between $13 million and $18 million for three consecutive days last week, according to Farside data, overshadowing small inflows from other products, including Grayscale’s mini trusts.
Meanwhile, Solana maintained its current positive trend, adding $3.2 million in inflows last week.
This inflow also ties in with the fact that during the recent Solana Breakpoint event in Singapore, several traditional financial institutions announced plans to launch financial services on the network.
Other large-cap alternative assets, including XRP and LTC, saw combined inflows of $300,000.
Among regions, the United States was unsurprisingly the main contributor to inflows last week, accounting for $277 million, followed by Switzerland with $63 million.
In comparison, Germany, Sweden and Canada saw outflows of $9.5 million, $7.8 million and $2.3 million, respectively.
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