- Crypto asset inflows reached $321M last week, driven by the Fed’s dovish stance and a 50bps rate cut.
- Bitcoin dominated with $284M in inflows, while short-Bitcoin products saw $5.1M.
- US led crypto inflows with $277M, followed by Switzerland at $63M.
Crypto asset inflows surged to $321 million last week, marking the second consecutive week of positive momentum for investment products in this sector, according to a report from CoinShares.
This uptick is likely tied to the Federal Open Market Committee’s (FOMC) more dovish comments, which included a 50 basis point rate cut. The market’s reaction to the central bank’s move has been noticeable, boosting total assets under management (AuM) by 9%, a significant gain in just one week.
Investment product volumes also increased, reaching $9.5 billion, which represents a 9% rise compared to the previous week. This growth underscores the shifting sentiment in digital asset markets following the Federal Reserve’s surprising policy adjustment.
US Leads with Strong Crypto Inflows, Switzerland Follows
In terms of regional breakdown, the United States led the charge with inflows totaling $277 million. Switzerland, often a quieter player, followed with $63 million, the second-largest inflow this year. On the other hand, Germany, Sweden, and Canada saw notable outflows, with $9.5 million, $7.8 million, and $2.3 million, respectively, leaving their markets.
Bitcoin remained the dominant force, attracting $284 million in inflows. However, it’s worth noting the rise of short-Bitcoin products, which saw $5.1 million in inflows. This suggests that while many are bullish on Bitcoin’s future, a portion of the market is hedging its bets or speculating on potential price corrections.
Ethereum’s struggles continued, recording its fifth consecutive week of outflows totaling $29 million last week. Much of this exodus can be attributed to the ongoing outflows from Grayscale Trust, one of the largest holders of Ethereum. Meanwhile, newly launched Ethereum ETFs have failed to generate meaningful inflows, reflecting a broader caution toward the asset.
Though smaller in scale, Solana continues to attract steady interest. Last week, Solana products brought in $3.2 million, marking another week of consistent inflows. This ongoing support for Solana signals that it remains a favored asset for some investors despite Bitcoin’s dominance in overall inflows.
As the market responds to the Fed’s rate cut and shifts in macroeconomic policies, digital assets appear poised for continued interest. However, regional variations and asset-specific trends highlight the complexity of the current landscape.
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