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- Bitcoin and Ether led $1.9B in crypto fund inflows last week.
- Total crypto ETP AUM reached a record $40.4B year-to-date.
- Fed rate cut sparked renewed investor interest despite cautious sentiment.
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Cryptocurrency funds continued to attract investor interest last week, extending a strong streak of inflows. Data from CoinShares shows global rypto exchange-traded products (ETPs) logged $1.9 billion in new investments, highlighting renewed confidence in digital assets following the US Federal Reserve’s interest rate cut.
Bitcoin and Ether Drive Growth
Bitcoin (BTC) and Ether (ETH) dominated inflows, securing $977 million and $772 million respectively. Solana (SOL) and XRP also saw notable demand, with $127 million and $69 million in inflows. According to CoinShares’ head of research, James Butterfill, these gains have pushed total assets under management (AUM) in global crypto ETPs to a record $40.4 billion year-to-date.
Bitcoin ETFs alone maintained a four-week streak of inflows, totaling $3.9 billion, while short-Bitcoin products saw $3.5 billion in outflows, bringing their AUM to a multi-year low of $83 million.
Market Reacts to Fed Rate Cut
Investors responded positively to the Fed’s 0.25% interest rate cut, the first of the year. “Although initial reactions were cautious, inflows resumed later in the week,” Butterfill said. The announcement briefly pushed Bitcoin above $117,000 and Ether over $4,600, reflecting a short-term boost in crypto prices.
Despite the gains, overall sentiment remained measured. The Crypto Fear & Greed Index, which tracks market mood, hovered near neutral at 53 last week, dipping into “Fear” territory at 45 on Monday.
ETPs Reflect Broader Investor Confidence
Ether ETPs recorded strong year-to-date inflows of $12.6 billion, underscoring growing institutional interest. The data suggests investors are increasingly using ETPs as a way to access cryptocurrency markets safely and efficiently, balancing risk with exposure to high-performing digital assets.
The convergence of strong inflows and a Fed rate cut has reinforced the appeal of crypto ETPs, particularly Bitcoin and Ether. While market sentiment remains cautious, the ongoing investment momentum signals confidence in digital assets as a viable alternative investment class.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Michael Saylor’s Strategy Buys $357M in Bitcoin as Corporate Treasury Trend Weakens
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
