Crypto products see $321 million in inflows, Ethereum funds lag
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Key Takeaways Digital asset investment products saw $321 million inflows following Fed’s dovish stance. Ethereum experienced its fifth consecutive week of outflows, totaling $29 million. Crypto products saw $321 million in inflows last week, except Ethereum (ETH) funds, which registered $28.5 million in negative net flows. As reported by CoinShares, this disconnect between Ethereum funds and the rest of the market is caused by Grayscale’s spot Ethereum exchange-traded fund (ETF), ETHE, which keeps registering outflows coupled with a slow pace by ETH ETFs. Consequently, last week marked the fifth straight week of outflows for ETH funds. Meanwhile, Bitcoin (BTC) dominated inflows with $284 million, accompanied by $5.1 million into short Bitcoin products. Moreover, Solana products maintained a consistent pattern of small inflows, attracting $3.2 million last week. The report highlighted that the money flow into crypto funds is likely driven by the 50 basis point interest rate cut by the Federal Open Market Committee (FOMC) last week. As a result, these products’ total assets under management (AUM) grew by 9%, while volumes reached $9.5 billion, also up 9% from the previous week. Regionally, the US led with $277 million in inflows, followed by Switzerland with $63 million. Germany, Sweden, and Canada saw outflows of $9.5 million, $7.8 million, and $2.3 million respectively. Bitcoin ETFs reversing outflows US-traded spot Bitcoin ETFs registered nearly $1 billion in outflows between Aug. 26 and Sept. 6 during one of BTC’s recent sell-off. Yet, most of the losses were recovered in the following two weeks, as these funds amassed $801 million in inflows between Sept. 9 and Sept. 20, according to Farside Investors’ data. For the second consecutive week, Fidelity’s FBTC dominated the inflows, with nearly $138 million of capital flowing to the US-traded BTC ETF. It was closely followed by ARK 21Shares’ ARKB, which…
Filed under: News - @ September 23, 2024 12:22 pm