The post Crypto products see surge in inflows fueled by FED rate cut appeared on BitcoinEthereumNews.com.

Coinshare’s latest report shows that the crypto market experienced its second consecutive week of inflows, in part due to the Federal Open Market Committee’s decision to cut interest rates for the first time since 2020. In Coinshare’s Sept. 23 research report, crypto investment products saw inflows amounting to $321 million. Although this figure is lower than the previous week’s $436 million rebound, the streak of positive flows remains strong. According to CoinShares head of research James Butterfill, last week’s inflow was likely caused by the FOMC’s decision to cut interest rate by 50 basis points last Wednesday. “As a result, total assets under management saw a 9% growth. Total investment product volumes were $9.5 billion, up 9% from the week prior.” Butterfill. The report shows that the majority of inflows came from the United States, with $277 million, followed by Switzerland with $63.4 million. While Brazil had modest inflows of $1.4 million and Australia saw no trading activity, these were offset by outflows from European countries like Germany and Sweden, with $9.5 million and $7.8 million, respectively. Canada also experienced outflows of $2.3 million, followed by Hong Kong with $1.3 million. Out of the eleven digital assets listed, Bitcoin (BTC) saw the largest weekly inflows of $284 million, which prompted inflows into short-bitcoin investment up to $5.1 million. Meanwhile, Ethereum (ETH) continues its five-week streak of being an outlier, with weekly outflows reaching $29 million. Jean-David Pequignot, Head of Markets at OSL, a Hong Kong-regulated digital asset platform, told crypto.news that Bitcoin and other crypto assets rallied in response to the FOMC rate cut. However, “the committee remains cautious about further cuts,” he noted. Pequignot also mentioned that Governor Bowman was in favor of a smaller cut, while Chair Jerome Powell expressed concerns about being too aggressive with policy loosening.…

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Filed under: News - @ September 23, 2024 1:22 pm