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.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
