Crypto asset investment products have once again seen a significant influx of capital, with a total of $321 million pouring in for the second consecutive week. CoinShares’ latest weekly report on the crypto ETP market attributes this sustained growth to the Federal Open Market Committee’s unexpectedly dovish tone, which included a 50 basis point interest rate cut last Wednesday. As a result, total assets under management (AuM) for crypto investment products have increased by 9% in the past week, with total volumes reaching $9.5 billion, a 9% rise from the previous week.
Bitcoin has been the main driver of these inflows, attracting $284 million in investments last week. This increase in demand is also evident in the spot market, where Bitcoin hit $64,000 and later closed above $63,000 for the first time in four weeks. Bitcoin has continued to maintain its gains, currently trading at $63,230.
However, CoinShares has observed a surge in interest in short-Bitcoin investment products due to recent price volatility. These products saw inflows of $5.1 million, indicating that some investors are cautious and hedging their bets against potential downward price movements in the cryptocurrency.
On the other hand, Ethereum-based products continue to struggle, experiencing outflows of $29 million last week. This marks the fifth consecutive week of declines, bringing the total outflows for the month to $145.7 million. CoinShares attributes these persistent outflows to the Grayscale Trust and limited inflows from newly launched ETFs.
Despite Ethereum’s struggles, Solana investment products have seen steady inflows of $3.2 million. Other cryptocurrencies such as XRP and Litecoin also experienced positive inflows, albeit at smaller scales of $200,000 and $100,000 respectively. However, investment products for BNB and Cardano registered a notable capital drain last week.
In terms of regional distribution, 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, totaling $19.6 million combined.
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