- Bitcoin funds dominated last week’s inflows with hundreds of millions.
- The development came amid interest rate cut expectations.
- Ether performed contrastingly to Bitcoin, hemorrhaging tens of millions.
Bitcoin dominated last week’s inflows into crypto investment products, pulling hundreds of millions as investors shifted to risky assets amid expectation of a rate cut.
The massive inflows came after Fed Chair Jerome Powell on August 23 hinted that central bank rates in the U.S. could be lowered as early as September, noting that the “time has come for policy to adjust.” The dovish comments spurred heightened market activity, with Bitcoin exchange-traded funds (ETFs) stealing the show.
Bitcoin Funds Pull $534 Million
According to an August 26 report by CoinShares head of research James Butterfill, Bitcoin investment products witnessed $534 million in inflows last week, with most of the funds coming from Friday’s market activity, shortly after Powell’s comments.
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On Friday, U.S.-listed spot Bitcoin ETFs extended their positive inflow streak into a seventh day with $252 million, the highest the funds had seen in almost a month. This figure pushed the total weekly inflows into the funds to $506.7 million, again a big jump from the previous week’s $32.58 million.
Contrastingly, Ethereum investment products recorded $36 million in outflows last week, with Butterfill noting that new issuers saw inflows with the Grayscale Ethereum trust offsetting this with outflows totaling $118 million.
“A month in from the ETH ETF launches, the new Ethereum ETFs have seen US$3.1bn of inflows, partially offset by outflows from the Grayscale Trust of US$2.5bn,” Butterfill said.
All crypto investment products pulled a combined inflow of $533 million, marking their largest inflows in five weeks. The U.S. accounted for the lion’s share of these inflows, pulling $498 million ahead of Hong Kong’s $16 million and Switzerland’s 14 million.
Read more news on how Ether ETFs finished their debut month:
Ethereum ETFs Wrap Up Their Debut Month: Are Results Promising?
Stay updated on how Thai authorities raided an illegal Bitcoin mining rig:
Thailand Seizes Illegal Bitcoin Mining Facility After Rampant Power Outages
