Global crypto investment products see $321 million in net weekly inflows as rebound continues: CoinShares
Quick Take Digital asset investment products brought in $321 million worth of net inflows globally for the second consecutive week, according to CoinShares. The surge was likely driven by the U.S. Federal Reserve’s 50-basis-point interest rate cut, Head of Research James Butterfill said.
Global crypto funds at asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares continued their rebound into a second week, adding net inflows worth $321 million last week, according to CoinShares — following two prior consecutive weeks of net outflows.
“This surge was likely driven by the Federal Open Market Committee (FOMC) comments last Wednesday, which took a more dovish stance than anticipated, including a 50 basis point interest rate cut,” CoinShares Head of Research James Butterfill wrote in a Monday report.
Total assets under management at the funds grew 9% as a result, with trading volume also up 9% on the week before at $9.5 billion, Butterfill added.
Weekly crypto asset flows. Images: CoinShares .
Bitcoin products dominate, ether funds remain an outlier
Bitcoin BTC +1.45% -based investment products dominated the flows as usual, generating $284 million in net inflows globally last week. However, the recent positive price action for the foremost cryptocurrency also attracted net inflows of $5.1 million into short-bitcoin funds, Butterfill noted.
Solana-based funds also continued a positive streak, adding $3.2 million worth of net inflows last week amid a series of announcements at the Solana Breakpoint conference in Singapore.
Meanwhile, ether-based investment products remain an outlier, registering a further $29 million in net outflows last week, extending their negative run to a fifth-consecutive week, now totaling $187.7 million.
This is primarily driven by persistent outflows from Grayscale’s converted higher-fee incumbent fund, ETHE, generating $2.8 billion in total net outflows since trading began in July compared to $2.2 billion worth of net inflows from the newly launched U.S. spot Ethereum ETH +2.83% ETFs, Butterfill added.
Regionally, U.S.-based funds also continued their dominance, witnessing $277 million in net inflows overall. Switzerland's registered investment products saw their second-largest weekly net inflows of the year, adding $63 million. However, funds in Germany, Sweden and Canada experienced net weekly outflows of $9.5 million, $7.8 million and $2.3 million, respectively.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Dow Jones Industrial Average gives back Friday's rally on a Boeing delay
ECB rate hike expectations cool down, Lagarde: Rising long-term rates will suppress growth and inflation
Christine Lagarde, President of the European Central Bank, stated that a significant rise in long-term interest rates will slow economic growth and suppress the transmission of energy prices to overall inflation, exceeding the extent forecasted by the ECB in September. She also emphasized that in the absence of signs of second-round effects, the ECB should adopt "moderate response measures" to control inflation. As a result, the market’s expectation of an ECB rate hike in October has dropped to less than 40%.
BitMine stock trades near golden cross as Ethereum holdings approach 5%
Chainlink’s CCIP upgrade adds extra security layers after $292M hack
Crypto prices
More
