Crypto Investment Products See $1.2 Billion Inflow as Bitcoin Surges

• Digital asset inflows totaled $1.2 billion in the third consecutive week of positive growth.
• Bitcoin alone attracted $1 billion in inflows, reflecting its dominant market position.
• Ethereum ended its five-week losing streak with $87 million in fresh inflows.

Digital asset investment products recorded $1.2 billion in inflows for the third straight week, according to a CoinShares report. This surge is likely due to expectations of dovish monetary policy in the U.S., which has fueled positive price momentum and a 6.2% rise in total assets under management (AuM) last week.

On September 18, the U.S. Federal Reserve cut its interest rate by 50 basis points for the first time since the COVID-19  pandemic. This move, intended to curb rising inflation, led to a surge in BTC’s prices. By the end of the week, Bitcoin’s value jumped over 11%, pushing the price above $62,000 for the first time in September.

Investor Confidence in Bitcoin and Ethereum Grows

Despite the significant inflows, trading volumes have not kept pace, falling 3.1% week-on-week. However, the approval of options for certain U.S.-based investment products appears to have improved market sentiment. The U.S. led the way with inflows of $1.2 billion, while Switzerland followed with $84 million, its highest inflow since mid-2022. Germany and Brazil saw outflows of $21 million and $3 million, respectively.

Having said that, Bitcoin attracted $1 billion in inflows, which also triggered an $8.8 million inflow into short-Bitcoin investment products. Meanwhile, Ethereum broke its five-week losing streak with $87 million in inflows.

Read also: Arthur Hayes: ETH Bull Run to Start When Fed Cuts Rates Below 4%

Market Sentiment For Altcoins Remain Mixed

For other altcoins, mixed sentiment prevailed. Solana recorded $4.8 million in outflows, while Litecoin and XRP posted modest gains of $2 million and $0.8 million, respectively. Binance and Stacks had outflows of $1.2 million and $0.9 million.

With ongoing optimism surrounding U.S. monetary policy, digital asset markets continue to experience significant inflows. However, the discrepancies between inflows and trading volume highlight investor caution.