Crypto Investment Products See Strong Inflows
Global crypto investment products saw a strong rebound last week. They attracted $921 million in fresh inflows into exchange-traded products (ETPs), according to CoinShares data. This follows a week with $513 million in outflows. Investor confidence is returning amid hopes for interest rate cuts.
Investor Confidence Returns Despite Uncertainty
James Butterfill, Head of Research at CoinShares, said the market bounced back despite uncertainty from the U.S. government shutdown. The shutdown delayed key economic data releases, leaving investors without clear guidance on U.S. monetary policy.
Butterfill explained, “The lower-than-expected CPI data released on Friday helped restore confidence that further rate cuts are likely this year.”
The data shows investors are positioning for a more favorable monetary environment. Weekly trading volume in crypto ETPs remained high at $39 billion. This is well above this year’s average of $28 billion per week.
U.S. and Germany Lead Global Crypto Inflows
The U.S. led global inflows last week, attracting $843 million into crypto funds. Germany followed with $502 million, marking one of its largest weekly inflows. This suggests growing investor interest in Europe.
Switzerland recorded $359 million in outflows. However, CoinShares said this mainly reflected asset transfers between providers, not actual selling by investors.
Bitcoin Gains While Ethereum Records Outflows
Bitcoin led inflows with $931 million, driven by expectations of interest rate cuts. Since the U.S. Federal Reserve began cutting rates, Bitcoin inflows have totaled $9.4 billion. Year-to-date, Bitcoin investment products have attracted $30.2 billion, below last year’s $41.6 billion.
Ethereum saw outflows of $169 million, its first in five weeks. Despite this, demand for leveraged Ethereum products remained strong, indicating traders expect short-term price movements.
Solana and XRP had smaller inflows of $29.4 million and $84.3 million, respectively. CoinShares noted flows in both assets cooled as the market awaits the launch of U.S. spot ETFs.
Market Outlook Remains Positive
Bitcoin and Ethereum prices ended the week higher, rising 3.5% and 3.1%, respectively. Most gains occurred during Sunday’s short liquidation surge. Growing expectations of rate cuts and steady trading volumes signal improving confidence in the digital asset market.
