Global crypto ETP inflows hit $921 million amid rate-cut optimism, with Bitcoin leading the surge and Ethereum seeing outflows.
Global cryptocurrency exchange-traded products (ETPs) experienced a surge of $921 million in inflows last week, marking a notable recovery after a week of outflows. The inflows were primarily driven by growing optimism surrounding potential rate cuts.
Bitcoin-based products saw the most substantial gains, while Ethereum products saw slight outflows. This trend is tied to shifting market expectations in the wake of recent economic data and ongoing uncertainties in the U.S. monetary policy.
Strong Inflows into Bitcoin Investment Products
Bitcoin ETPs saw a significant rebound, attracting $931 million in net inflows. This shift follows a week of $513 million in outflows. CoinShares noted that Bitcoin-based investment products have been a consistent focus for investors, especially as rate-cut expectations have gained momentum.
The influx of funds into Bitcoin products brings the total net inflows since the Federal Reserve’s initial rate cuts to $9.4 billion.
The U.S. market was the dominant contributor to the overall inflows, with Bitcoin ETPs in the country accounting for $446 million.
Notably, BlackRock’s Bitcoin ETP attracted $324 million of the total, further signaling the growing interest in Bitcoin investment products.
The current total year-to-date inflows for Bitcoin funds stand at $30.2 billion, though they remain behind last year’s total of $41.6 billion.
Ethereum ETPs See Outflows Amid Market Adjustments
While Bitcoin ETPs showed strong inflows, Ethereum products faced outflows. Ethereum-based investment products saw $169 million in net outflows. This marks the first week of negative net flows for Ethereum in five weeks.
U.S.-based spot Ethereum exchange-traded funds (ETFs) saw the largest portion of these outflows, which amounted to $243.9 million. However, inflows from other regions helped mitigate the overall decline.
Despite the outflows, Ethereum remains an important asset within the crypto investment space. The volatility of Ethereum’s market is evident as fluctuations in fund flows often align with broader market sentiment.
The short-term pullback in Ethereum-based ETPs contrasts with Bitcoin’s recent performance, suggesting different investor sentiment towards each cryptocurrency at present.
U.S. and Germany Dominate Global Crypto ETP Inflows
The majority of the global inflows were concentrated in the U.S. market, which accounted for $843 million of the total $921 million. Germany also saw a strong performance, with crypto investment products in the country adding $502 million in net inflows.
These two regions continue to dominate the global crypto ETP market, reflecting ongoing investor interest in established markets for digital assets.
However, Switzerland saw a slight decline, with net outflows of $329 million. CoinShares attributed this to an asset transfer between providers rather than actual selling pressure.
Despite this, the global trend points to increasing confidence in the potential for rate cuts and positive market performance in the short term.
The $921 million surge in weekly crypto ETP inflows reflects renewed investor confidence, particularly in Bitcoin-based products. The market’s focus on potential rate cuts and the broader economic outlook is likely to continue shaping the trends in digital asset investment products in the coming weeks.