Last week, the decision of the Federal Reserve to reduce interest rates sparked a new wave of investment in digital asset funds, Coinshares following $ 1.9 billion in entries.
The change of policy, a drop of 25 base points announced after the FOMC meeting in September, gave investors a clearer signal than risk assets could benefit from easier financial conditions.
James Butterfill, responsible for the search for Coinshares, noted that market traders initially hesitated when they interpreted the so-called “healing cup” as a mixed message. However, their feeling overturned once the markets had time to adapt to this change in policy.
According to him:
“The entries resumed later in the week, with $ 746 million which entered Thursday and Friday when the markets began to digest the implications for digital assets.”
He noted that the momentum bore total assets under management in cryptographic investment products at $ 40.4 billion, the highest level recorded this year. Given this, he said that 2025 could compete with the counting of $ 48.6 billion from last year if the current rate continues.
Bitcoin dominates
Bitcoin remained the largest draw, capturing $ 977 million in entries last week. It was the third consecutive week of net earnings because it exceeded Ethereum as a favorite allowance.
Consequently, BTC-based funds have now experienced nearly $ 4 billion inputs this month, while their flows of the year at the start of the year rose to $ 24.7 billion. Funds manage more than $ 183 billion in assets in their various portfolios.
On the other hand, the appetite for court-bit products continued to decrease, the funds losing $ 3.5 million last week and exceeding a multi-year hollow of $ 83 million under management.
The situation of the Bitcoin Court Fund can be linked to the reluctance of investors to bet against Bitcoin, because they believe that the cowardly monetary policy inclines the balance to the risky trades.
Altcoins draws $ 1 billion
Meanwhile, investors’ interest in Altcoin products was pronounced last week, because this class of digital assets attracted about $ 1 billion.
Ethereum, the second largest cryptographic asset by market capitalization, led entries for these altcoins, drawing $ 772 million in fresh capital.
This influx pushed its total for the start of the year to 12.6 billion dollars and sent assets under management in Ethereum products to a record of $ 40.3 billion.
At the same time, smaller digital active ingredients have joined the gathering with important entries.
According to Coinshares, Solana Products attracted $ 127.3 million, while XRP funds brought in $ 69.4 million. Both active has now crossed the $ 1.5 billion mark in the 2025 entrances.
Cardano, Suis, Litecoin and Chainlink attracted around $ 6 million, reflecting a large spread of interest in investors.
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