Investors Boost Digital Asset Funds Significantly.
Investments in digital asset products have surged, marking a significant inflow of $321 million for the second week in a row. This increase is largely attributed to the Federal Open Market Committee's (FOMC) recent decision to lower interest rates by 50 basis points, a move that surpassed market expectations. As a result, the total assets under management (AuM) in digital asset funds have jumped by 9%.
Why Is Bitcoin Leading Inflows?
Bitcoin has emerged as the frontrunner, drawing in $284 million in inflows. Despite some price volatility after the rate cut, short Bitcoin investment products only attracted
$5.1 million. This implies that investors
are more optimistic about potential
upward trends in Bitcoin's value rather
than downturns.
What Is the Situation with Ethereum?
Ethereum, however, is experiencing a different scenario. Investment products tied to Ethereum have seen outflows for the fifth consecutive week, with $29 million leaving these funds recently. This trend is linked to ongoing withdrawals from the Grayscale Trust and tepid interest in new exchange-traded funds (ETFs).
Solana, a well-known altcoin, continues to see steady interest, attracting $3.2 million in the last week. This reflects sustained investor interest in alternative digital projects.
Regarding regional inflows, the United
States is at the forefront, contributing
$277 million, while Switzerland saw its
highest weekly inflow this year at $63
million. In contrast, Germany, Sweden,
and Canada experienced outflows,
losing $9.5 million, $7.8 million, and
$2.3 million, respectively.