- Trading volumes in crypto investment products rose to $12.8B, up by 55% from the prior week.
- Bitcoin and Ethereum dominated the inflow with $1.98B and $70M respectively.
Digital asset investment products saw an inflow totaling $2 billion in the last week, bringing this recent 5-week of positive inflows to $ 4.3 billion. And trading volumes in exchange-traded products (ETPs) rose to $12.8 billion for the week, 55% up from the week prior, according to the recent report of CoinShares. This hints at the growing interest in the market amid expectations of interest rate cuts.
Moreover, the market sentiment for crypto investment products remains bullish, with flows by asset providers including Ark Invest, BlackRock, Fidelity, Grayscale, Bitwise, ProShares, and 21Shares. The flows by the token include Bitcoin and Ethereum.
Looking At the Broader Trend
Bitcoin continues to dominate the market in the share of the inflows. Last week, Bitcoin investment products saw an inflow of $1.98 billion. Ethereum marked an inflow, totaling $70 million last week, the largest weekly inflow for Ethereum since March. This interest can be due to factors like its upcoming network upgrades and the growing ecosystem of decentralized applications (dApps) and decentralized finance (DeFi) built on the Ethereum blockchain.
Altcoins also marked minor activity, with Fantom and XRP standing out, with inflows of $1.4 million and $1.2 million likely. And for the third straight week, short-bitcoin products experienced outflows, totaling $5.3 million.
These inflows are driven by the assumption of rate cuts by central banks. The expectation that interest rates will decrease has made the assets, particularly Bitcoin and Ethereum. This price action has driven total assets under management (AuM) to rise above $100 billion for the first time since March. These inflows into the investment products over the past week appeared to be fueled for further growth of the global financial system.
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