Digital asset investment products experienced a second week of inflows, adding $321 million.
CoinShares attributes the gain on the 50 basis-point interest-rate cut by the U.S. Federal Reserve, the first time the central bank has reduced the cost of borrowing in four years.
Digital asset investment products experienced a second straight week of inflows, adding a net $321 million, according to crypto asset manager CoinShares.
CoinShares attributes the performance to the 50 basis-point interest-rate cut by the Federal Reserve, the first time the U.S. central bank has reduced the cost of borrowing in four years.
Bitcoin {{BTC}}-linked products led the inflows with $284 million, while their ether {{ETH}} equivalents saw outflows of $29 million. This was the fifth consecutive week that ETH products registered outflows, even as the second-largest cryptocurrency by market value led gains after the Fed move.
"This is due to persistent outflows from the incumbent Grayscale Trust and scant inflows from the newly issued ETFs," CoinShares wrote on Monday.
Ether exchange-traded funds have consistently underperformed bitcoin ETFs since they listed in the U.S. in July. Their first five weeks of trading saw $500 million of outflows, while their BTC counterparts had experienced more than $5 billion of inflows during their first five weeks.
JPMorgan attributed the disparity to bitcoin's "first mover advantage," the lack of staking provision in ETH products and lower liquidity making them less appealing to institutional investors.
Read More: Bitcoin ETFs Are Fine Despite Suffering Their Worst String of Outflows, Says Expert
