- Digital asset investment funds have seen inflows for two consecutive weeks.
- FOMC’s recent rate cut likely drove last week’s inflows into the funds.
- Bitcoin dominated the inflows as Ethereum funds bled for a fifth consecutive week.
Global digital asset investment funds have witnessed their second week of consecutive inflows, pulling hundreds of millions amid heightened market activity across various regions.
In its latest report, CoinShares said the continued crypto fund inflow streak could be attributed to the Federal Open Market Committee’s (FOMC) move to implement a 50 basis point interest rate cut last Wednesday. The above-than-expected rate cut and a steady U.S. dollar drove investor bets on equities and other risk assets, such as cryptocurrencies.
Crypto Fund Inflows Top $321 Million
Per the report, crypto funds at investment managers like BlackRock, Grayscale, and Fidelity recorded a remarkable inflow of $321 million last week. While this was slightly lower than the prior week’s $436 million, the funds’ trading volume rose 9% to $9.5 billion as total assets under management also witnessed a remarkable growth of 9%.
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Bitcoin stole the show with $284 million in inflows, but investors also capitalized on the crypto asset’s recent price movements to pour $5.1 million into short-bitcoin investment products. While Solana maintained small but consistent weekly inflows, attracting $3.2 million, Ethereum funds prolonged their bleeding.
“Ethereum remains an outlier, seeing outflows for the 5th consecutive week, totalling US$29m last week. This is due to persistent outflows from the incumbent Grayscale Trust and scant inflows from the newly issued ETFs,” CoinShares Head of Research James Butterfill said.
Regionally, the U.S. dominated the inflows with $277 million, as Germany, Sweden, and Canada logged outflows of $9.5 million, $7.8 million, and $2.3 million, respectively. Switzerland witnessed the second-largest weekly inflows this year, totaling $63 million.
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