Digital asset investment products attracted $921 million in inflows over the past week, rebounding after several volatile sessions.
Key points to remember:
- Digital asset funds saw $921 million in inflows last week, as weaker US inflation data revived hopes for rate cuts.
- Bitcoin led the rebound with $931 million in inflows, while Ethereum products saw their first outflows in five weeks.
- Global ETP trading volumes jumped to $39 billion, well above the annual average, mainly driven by U.S. and German investors.
The rise comes amid renewed optimism that U.S. interest rates could fall later this year following weaker-than-expected inflation data, according to a report released Monday by CoinShares.
Falling CPI Data Boosts Investor Confidence as ETP Volumes Hit $39 Billion
The CPI decline released Friday boosted investor confidence despite uncertainty caused by the ongoing U.S. government shutdown, which has delayed key economic indicators.
Global trading activity also remained strong, with ETP volumes reaching $39 billion, well above the year-to-date weekly average of $28 billion.
The United States led the region with $843 million, while Germany recorded one of its biggest weekly totals on record, with $502 million.
Switzerland, meanwhile, saw capital outflows of $359 million, although these were attributed to transfers of assets between suppliers rather than active sales.
Bitcoin continued to dominate investor demand, recording $931 million in inflows for the week.
Since the Federal Reserve began cutting rates, Bitcoin products have seen cumulative inflows of $9.4 billion, bringing total year-to-date inflows to $30.2 billion, still short of last year’s record $41.6 billion.
Ethereum products, however, saw outflows of $169 million, the first in five weeks. Despite this, demand for 2x leveraged Ethereum ETPs remains strong.
Solana and XRP also saw inflows decline to $29.4 million and $84.3 million, respectively, as investors await planned US spot ETF launches.
Ethereum ETFs face $244M outflows as Bitcoin products regain momentum
Spot Ethereum exchange-traded funds (ETFs) recorded their second straight week of outflows, signaling a cooling in investor sentiment after months of strong inflows.
According to data from SoSoValue, Ether products saw $243.9 million in redemptions for the week ending Friday, following $311 million the previous week.
Cumulative inflows into all Ether ETFs now total $14.35 billion, with assets under management at $26.39 billion, or 5.55% of Ethereum’s market cap.
Outflows on Friday alone reached $93.6 million, led by BlackRock’s ETHA ETF, which saw $100.99 million in withdrawals.
Meanwhile, Grayscale’s ETHE and Bitwise’s ETHW reported minor inflows, suggesting selective investor rotation rather than a broad withdrawal of Ethereum exposure.
In contrast, spot Bitcoin ETFs saw a surge in demand, attracting $446 million in inflows during the same period. BlackRock’s IBIT and Fidelity’s FBTC led the rally, adding $32.68 million and $57.92 million, respectively.
Cumulative total inflows into Bitcoin ETFs now stand at $61.98 billion, with $149.96 billion in total assets, representing 6.78% of Bitcoin’s market capitalization.
The article Crypto Investment Products See Inflows of $921 Million as Rate Cut Hopes Rise appeared first on Cryptonews.
