Bitcoin leads $321 million inflows into crypto as Fed rate cuts spur growth News ▸ US ▸ Bitcoin ▸ Investments
Bitcoin leads $321 million inflows into crypto as Fed rate cuts spur growth
Ethereum outflows contrast broader market rebound following dovish Fed stance.
2 min read
Updated: Sep. 23, 2024 at 2:57 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Digital asset investment products saw inflows for the second consecutive week this month, with investors pouring $321 million into the industry, according to CoinShares‘ latest weekly report.
This influx boosted the total assets under management (AuM) for crypto exchange-traded products (ETPs) by 9%, bringing the total to $85.8 billion. The overall investment product volume also increased to approximately $9.5 billion.
James Butterfill, head of research at CoinShares, linked this positive trend to the Federal Reserve’s recent decision to cut interest rates by 50 basis points. He explained:
“This surge was likely driven by the Federal Open Market Committee (FOMC) comments last Wednesday, which took a more dovish stance than anticipated, including a 50 basis point interest rate cut.”
Bitcoin, US dominate flows
A breakdown of the flows showed that Bitcoin-based investment products led the inflows, generating $284 million in net gains globally last week. Notably, major crypto funds from firms like BlackRock, Bitwise, Fidelity, ProShares, and 21Shares contributed to this rebound, collectively adding $321 million in net inflows.
The positive price momentum for Bitcoin also attracted investors with bearish sentiment, who allocated $5.1 million to short-Bitcoin funds.
Ethereum faced its fifth consecutive week of outflows, totaling $29 million. This trend stems from ongoing withdrawals from Grayscale’s ETHE product and declining interest in new offerings.
According to Farside data, ETHE experienced outflows between $13 million and $18 million for three straight days last week, overshadowing minor inflows from other products, including Grayscale’s Mini-Trust.
Meanwhile, Solana maintained its current positive trend, adding $3.2 million in inflows last week. This flow can also be linked to the announcements of several traditional financial institutions announcing plans to launch financial services on the network during the latest Solana Breakpoint event in Singapore.
Other large-cap altcoins, including XRP and Litecoin, saw combined inflows of $300,000.
Across regions, the US unsurprisingly emerged as the leading contributor to last week’s inflow, accounting for $277 million, followed by Switzerland with $63 million.
In contrast, Germany, Sweden, and Canada experienced outflows of $9.5 million, $7.8 million, and $2.3 million, respectively.
Mentioned in this article
Bitcoin 
Ethereum 
XRP 
Solana 
Litecoin 
BlackRock 
Bitwise 
21shares 
CoinShares 
Fidelity Investments 
Grayscale Investments Grayscale Ethereum Trust Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,464.43
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
XRP
$2.27667
The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Solana
$195.239
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Litecoin
$100.736
Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Bitwise
Bitwise Asset Management pioneered the first cryptocurrency index fund and is the leading provider of rules-based exposure to the cryptoasset space..
21shares
21Shares is a Swiss provider of crypto- currency exchange-traded products (ETPs).
Fidelity Investments
Fidelity Investments Inc., commonly referred to as Fidelity, is a multinational financial services corporation based in Boston, Massachusetts.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
The Grayscale Ethereum Trust (ETHE) by Grayscale is an investment vehicle designed to offer investors exposure to Ethereum, one of the leading cryptocurrencies by market capitalization.