Data from CoinShares shows a reversal in cryptocurrency investment trends, with US$436 million inflows following weeks of outflows.
Cryptocurrency investment products experienced their first reversal in weeks, with inflows reaching $436 million after a period of $1.2 billion in outflows.
The surge in inflows seen towards the end of the week is due to changes in market expectations of a potential 50 basis point interest rate cut on September 18, said CoinShares research director James Butterfill, adding that the sentiment was driven by comments from former New York Fed President Bill Dudley.
Despite the wave of inflows, trading volumes in exchange-traded funds remained at $8 billion for the week, well below the year-to-date average of $14.2 billion. Regionally, the United States led the way with inflows of $416 million, while Switzerland and Germany contributed $27 million and $10.6 million respectively.
As always, Bitcoin (BTC) was the main beneficiary, reversing a 10-day streak of outflows totaling $1.18 billion with new inflows of $436 million. In contrast, Bitcoin short products saw $8.5 million in outflows after three straight weeks of inflows.
Meanwhile, Ethereum (ETH) continued to struggle, recording $19 million in outflows driven by “concerns about layer 1 profitability after Dencun.” Solana (SOL) marked its fourth straight week of inflows totaling $3.8 million. Blockchain stocks also saw gains, with an influx of $105 million driven by the launch of several new ETFs in the US, the data shows.
The inflows come just weeks after Bitcoin saw a sharp decline in exchange activity in early September, with daily inflows falling 68% from 68,470 BTC to 21,742 BTC and outflows falling 65% from 65,847 BTC to 22,802 BTC .
