Cryptocurrency ETFs continued to attract investor interest, recording a second week of positive inflows.
According to a report by cryptocurrency investment firm CoinShares, digital asset funds saw inflows of $321 million last week, although that figure is slightly lower than the $436 million recorded last week.
The report showed that US-based funds captured the lion's share of inflows, recording $277 million in inflows.
It was followed by Switzerland, which had the second largest inflows this year, with a total of $63 million.
On the other hand, Germany, Sweden and Canada saw outflows of $9.5 million, $7.8 million and $2.3 million respectively, reflecting a slowdown in these markets compared to the US and Switzerland.
The impact of Federal Reserve policy on flows:
CoinShares believes that the US Federal Reserveâs decision to cut interest rates by 50 basis points has contributed significantly to the positive inflows into crypto funds.
This decision has increased investors' appetite for high-risk assets such as cryptocurrencies.
As a result, the total assets under management (AUM) of crypto funds increased by 9%.
In addition, investment product volumes rose to $9.5 billion, up 9% compared to the previous week.
Bitcoin funds were the biggest beneficiaries of inflows, recording $284 million in inflows, according to a CoinShares report.
Bitcoin short-term investment products also saw an additional $5.1 million in inflows, as investors took advantage of recent moves in the price of Bitcoin.
In contrast, Ethereum funds continued to underperform Bitcoin, recording outflows for the fifth week in a row.
These funds saw outflows of $29 million over the past week, mainly due to continued outflows from the Grayscale Ethereum Trust (ETHE), as well as limited inflows from new Ethereum ETFs.
