Coinspeaker
Crypto Funds Experience $321 Million Inflows Following Dovish FOMC Statements
The worldwide crypto investment sector saw a significant rebound last week, with net inflows totaling $321 million across different digital asset platforms. This marked recovery came after two weeks of outflows, indicating a resurgence in investor confidence within the crypto market.
Major asset management firms, including BlackRock, Fidelity, Bitwise, and Grayscale, played a vital role in this upswing. Their participation highlights the increasing institutional interest in digital currencies. Additionally, this recovery is linked to recent announcements from the Federal Open Market Committee (FOMC), which adopted a more restrained stance than expected.
According to CoinShares Head of Research James Butterfill, the FOMC’s decision to lower interest rates by 50 basis points last Wednesday was instrumental in enhancing market sentiment, creating a more conducive environment for investors and stimulating capital inflow into crypto assets.
Photo: CoinShares
Consequently, total assets under management (AUM) in cryptocurrency funds increased by 9%, reaching $9.5 billion. Trading volumes also witnessed a 9% rise from the previous week, further emphasizing the strengthening momentum in the market.
Bitcoin Leads the Charge
Bitcoin-related products spearheaded the inflow trends, representing $284 million of the net inflows. The bullish trend in Bitcoin attracted not only long-term investors but also resulted in a notable inflow of $5.1 million into short-bitcoin products, illustrating a varied market sentiment.
While Bitcoin
BTC
$63,180
24h volatility:
0.9%
Market cap:
$1.25 T
Vol. 24h:
$31.69 B
maintained its leading position, Solana-related funds also experienced positive results, with $3.2 million in inflows during the same period. The developments from the Solana Breakpoint conference in Singapore significantly bolstered these investments.
Conversely, Ether products continued their downward trend, facing net outflows of $29 million, marking the fifth consecutive week of losses. Over this time, Ether funds have experienced total outflows amounting to $187.7 million, with Grayscale’s ETHE fund—known for its high fees—being the largest contributor to these losses. Nevertheless, US spot Ethereum ETFs launched in July have successfully attracted $2.2 billion in inflows.
Regional Variations in Fund Flows
Regionally, US-based funds led the way, capturing the majority of inflows with $277 million. Switzerland also showed strength, recording its second-largest weekly inflow of the year at $63 million. In contrast, investment products from Germany, Sweden, and Canada experienced outflows of $9.5 million, $7.8 million, and $2.3 million, respectively.
This geographical discrepancy highlights the differing investor sentiment across global markets. While the U.S. and Switzerland saw a renewed interest in crypto investments, other regions remained cautious in the face of fluctuating market conditions.
As the global crypto market moves through this recovery phase, it remains uncertain whether these inflows will maintain their momentum or if forthcoming macroeconomic factors will dampen investor optimism again. Nonetheless, the ongoing market recovery underscores the resilience of the crypto industry and its ability to adapt to changing regulatory and financial environments.
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Crypto Funds Experience $321 Million Inflows Following Dovish FOMC Statements
