Institutional Investors Pump $321M Into Crypto Following Fed Rate Cut

Institutional investors pump $321 million into crypto following the Fed rate cut, boosting the growth of the crypto market.

Bitcoin leads with $284 million in inflows, while Ethereum continues to face outflows for the fifth consecutive week.

Solana shows stable growth, with $3.2 million in new investments weekly, standing out in the crypto market.

Digital asset manager CoinShares reported that institutional investors have allocated hundreds of millions of dollars to digital asset investment products following the Federal Reserve's announcement to cut interest rates by 50 basis points. This move has generated a positive response in the crypto market, according to CoinShares' latest Digital Asset Fund Flows report.

Impact of Rate Cut on Digital Assets

CoinShares highlights in its report that cryptocurrency investment products saw significant capital inflows during the past week, with a total of $321 million in new investments. This increase occurred following statements by Fed Chairman Jerome Powell regarding the Federal Open Market Committee's (FOMC) decision to cut interest rates. Digital asset investment products experienced a second consecutive week of inflows, reaching a total of 321 million. This increase was driven by the FOMC's more dovish stance, which included a 50 basis point cut in interest rates. As a result, total assets under management (AuM) grew by 9%, reaching investment volumes of 9.5 billion, an increase of 9% compared to the previous week, the report highlights.