Crypto investment products globally surged back into positive territory with $436 million in net inflows last week, as reported by CoinShares. This marks a stark turnaround following two consecutive weeks of outflows from major crypto funds like BlackRock, Grayscale, and ProShares.
James Butterfill, Head of Research at CoinShares, highlighted that market sentiment improved significantly towards the end of the week due to shifting expectations around an anticipated 50 basis point interest rate cut. The Federal Reserve’s upcoming meeting on September 18 has been a focal point for market participants, especially after remarks made by former Fed President Bill Dudley.
However, the trading volume across crypto products remained subdued, staying flat at $8 billion, notably below the 2024 average of $14.2 billion.
Bitcoin Rebounds, Ethereum Continues to Struggle
Bitcoin-based investment products saw an impressive reversal, recording $436 million in weekly net inflows, breaking a prior 10-day streak of $1.2 billion in outflows. Notably, U.S.-based Bitcoin ETFs led this resurgence, pulling in $403.9 million. Funds from Switzerland and Germany also added to the positive flows with $27 million and $10.6 million, respectively. Canada, however, saw net outflows totaling $18 million.
On the other hand, Ethereum-based products remained in the negative, continuing a downward trend with an additional $19 million in net outflows, compounding the previous week’s $98 million loss.
The Ethereum-to-Bitcoin ratio dropped below 0.04 for the first time since April 2021, further highlighting the stark contrast in market dynamics between the two leading cryptocurrencies.
Additionally, Solana-based products posted $3.8 million in inflows, marking the fourth consecutive week of positive flows.
