Crypto Investment Products See $1.2 Billion in Inflows, Highest in 10 Weeks

Digital asset funds saw a big boost last week, attracting $1.2 billion, the largest amount in nearly ten weeks, according to CoinShares, a major crypto asset manager. This marks the third week in a row that money has flowed into these funds, driven by expectations that the U.S. may cut interest rates soon.

Ad

Major Inflows from U.S.-Based Funds

Most of the new investment came from U.S.-based funds, which brought in $1.17 billion of the total inflows. This increase shows a growing interest in cryptocurrency, as investors look to benefit from positive economic changes. The rising interest indicates that many are optimistic about the future of digital assets.

Impact of SEC Approval on Bitcoin ETFs

A key factor in this surge was the recent approval by the Securities and Exchange Commission (SEC) for options tied to BlackRock's bitcoin exchange-traded fund (ETF), known as IBIT. As the largest spot BTC fund in the U.S., its approval has sparked a wave of optimism among investors. While this approval likely helped improve market sentiment, CoinShares noted that trading volumes actually dipped slightly by 3.1% from the previous week.

Advertisement

Bitcoin and Ether Funds Experience Strong Demand

In terms of specific cryptocurrencies, bitcoin funds attracted over $1 billion in new investments, showing that investors are still very interested in the leading cryptocurrency. Additionally, ether funds saw an inflow of $87 million, breaking a five-week streak of losses. This is the first significant inflow for ether since early August, suggesting that interest in this second-largest cryptocurrency is picking up as well.

What’s Next for Crypto Investments?

These inflows into digital asset funds indicate a growing confidence among investors in the crypto market, especially following recent regulatory developments surrounding bitcoin ETFs. As the crypto landscape continues to evolve, these trends show that more people are eager to invest in cryptocurrencies.

With the possibility of further interest rate cuts in the U.S., the strong interest in both bitcoin and ether could signal a comeback for crypto investments. Investors are adapting to new rules and searching for opportunities in a rapidly changing financial environment. It will be interesting to see how these trends develop in the coming weeks.

Also Read: Shiba Inu Beats Bitcoin and Dogecoin with the Highest One-Year Returns