Terrill Dicki
Sep 16, 2024 08:17
Digital asset investment products witness $436 million in inflows following $1.2 billion in outflows, spurred by market anticipation of interest rate reductions.
Digital asset investment products saw a significant recovery, recording inflows of $436 million after previous outflows totaling $1.2 billion, as reported by CoinShares. This renewed investor enthusiasm is largely linked to a notable change in market expectations regarding a possible 50 basis point interest rate cut expected on September 18th.
Bitcoin (BTC) Fuels Inflows
Bitcoin (BTC) emerged as the principal beneficiary, attracting inflows of $436 million after a 10-day outflow streak that totaled $1.18 billion. Moreover, short-bitcoin positions experienced a reversal, with outflows of $8.5 million after three weeks of inflows.
Ethereum (ETH) Continues to Struggle
Conversely, Ethereum (ETH) faced ongoing difficulties, reporting outflows of $19 million. This phenomenon is thought to be driven by persistent worries regarding Layer 1 (L1) profitability.
Regional Inflows and Outflows
By region, the United States spearheaded inflows, totaling $416 million. Switzerland and Germany also reported substantial inflows of $27 million and $10.6 million, respectively. In contrast, Canada recorded slight outflows of $18 million.
Other Significant Movements
Solana (SOL) marked its fourth consecutive week of inflows, totaling $3.8 million. Additionally, blockchain equities experienced a positive trend, garnering inflows of $105 million following the introduction of several new ETFs in the United States.
Meanwhile, trading volumes in ETFs remained steady at $8 billion for the week, considerably below this year’s average of $14.2 billion.
For more comprehensive insights, visit the CoinShares blog.
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