Crypto asset investment products have continued to attract significant capital for the second consecutive week, with a total of $321 million pouring in, according to the latest weekly report on the crypto ETP market by CoinShares. This sustained growth is believed to be a result of the Federal Open Market Committee’s unexpectedly dovish tone last Wednesday, which included a 50 basis point interest rate cut. As a result, total assets under management (AuM) for crypto investment products have increased by 9% over the past week, with total volumes reaching $9.5 billion, a 9% rise from the previous week.
Bitcoin remains the driving force behind the inflows, attracting $284 million in investments last week. This increase is also evident in the spot market, where Bitcoin reached $64,000 and closed above $63,000 for the first time in four weeks. Bitcoin has continued to maintain its gains, currently trading at $63,230, briefly reaching $64,600 earlier today.
However, CoinShares has noted that recent price volatility has led to a surge in interest in short-Bitcoin investment products, which saw inflows of $5.1 million. This trend suggests that some investors are cautious and hedging their bets against potential downward price movements in the cryptocurrency.
In contrast to Bitcoin’s strong performance, Ethereum-based products continue to struggle, with outflows reaching $29 million last week. This marks the fifth consecutive week of declines, bringing the total outflows for the month to a significant $145.7 million. CoinShares attributes this persistent outflow to the Grayscale Trust and limited inflows from newly launched ETFs.
On a more positive note, Solana investment products have seen steady, albeit modest, inflows, with $3.2 million entering the market last week. Other cryptocurrencies, such as XRP and Litecoin, also experienced positive inflows at smaller scales, with $200,000 and $100,000, respectively. However, investment products for BNB and Cardano registered a notable capital drain last week.
In terms of regional inflows, the United States led the way with substantial inflows of $277 million, followed closely by Switzerland with its second-largest weekly inflows this year, totaling $63 million. However, Sweden, Germany, and Canada experienced outflows, with a combined total of $19.6 million.
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