The most recent report released by Coinshares indicates a remarkable recovery in global crypto investment products, which witnessed $436 million in net inflows last week, largely propelled by the resurgence of Bitcoin. This development signifies a return to positive inflows after two weeks of consecutive outflows.
The positive flow was heavily influenced by major asset management firms, including BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, which have seen a revival in interest towards crypto investment products.
Breaking Down The Fund Flows
Funds focused on Bitcoin spearheaded the recovery, attracting $436 million in net inflows after a 10-day stretch of outflows that totaled $1.2 billion.
This change indicates a significant reversal in investor sentiment towards Bitcoin, especially within the US market. Spot Bitcoin exchange-traded funds (ETFs) in the United States alone contributed a substantial $403.9 million in net weekly inflows.
European markets also displayed favorable trends, with funds based in Switzerland and Germany recording net inflows of $27 million and $10.6 million, respectively. In contrast, Canadian products faced net outflows of $18 million, diverging from this positive trend.

Following three weeks of net inflows, short Bitcoin investment products reversed their trajectory, showing net outflows of $8.5 million. This change may reflect a shift in investor strategies, suggesting a return of confidence in the market.
Moreover, Solana investment products experienced net inflows of $3.8 million for the fourth consecutive week, reflecting growing interest in alternative cryptocurrencies outside of Bitcoin.

Reasons Behind The Rebound And The Caveat
As highlighted by CoinShares Head of Research, James Butterfill, the changing market sentiment correlates with evolving expectations about potential interest rate cuts.
Butterfill specifically remarked:
We believe that the spike in inflows towards the end of the week was influenced by a notable shift in market expectations for a potential 50 basis point interest rate cut on September 18th, following remarks from former NY FED President Bill Dudley.
Despite this resurgence, trading volumes across crypto investment products remained stable at $8 billion for the week, which is considerably lower than the 2024 average of $14.2 billion.
Furthermore, while Bitcoin-based funds propelled the rebound, Ethereum-based funds have continued to face challenges, recording yet another week of net outflows, reflecting differing investor attitudes within the crypto landscape.
The CoinShares report indicates that the previous week saw net outflows of $19 million from Ethereum funds, adding to the $98 million in negative flows reported the week before.
Featured image created with DALL-E, Chart from TradingView