Bitcoin Sees $436 Million Inflows in Crypto Investment Surge While Ethereum Falters
Global crypto investment products experienced a notable upswing, with $436 million in net inflows recorded last week, as per the latest report by CoinShares. This resurgence was primarily fueled by Bitcoin’s resurgence, marking a shift to positive flows following two consecutive weeks of net outflows.
Leading asset managers like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares have all shown a turnaround in their investments, indicating a renewed interest in crypto investment products.
Bitcoin-based funds took the lead in this rebound, attracting $436 million in net inflows after experiencing a 10-day streak of outflows totaling $1.2 billion. This shift signals a significant change in investor sentiment toward Bitcoin, particularly in the US market, where spot Bitcoin exchange-traded funds (ETFs) contributed $403.9 million in net weekly inflows.
European markets also displayed positive trends, with Switzerland and Germany-based funds recording net inflows of $27 million and $10.6 million, respectively. However, Canadian products faced net outflows of $18 million, diverging from the overall positive trend.
Short Bitcoin investment products, after three weeks of inflows, reversed course with net outflows of $8.5 million, possibly indicating a shift in investor strategies and a return of confidence to the market. Meanwhile, Solana investment products saw net inflows of $3.8 million for the fourth consecutive week, showcasing a growing interest in alternative cryptocurrencies beyond Bitcoin.
The rebound in market sentiment, according to CoinShares Head of Research James Butterfill, can be attributed to changing expectations regarding potential interest rate cuts. Butterfill highlighted a surge in inflows towards the end of the week, driven by market expectations of a possible 50 basis point interest rate cut on September 18th, following comments from former NY FED President Bill Dudley.
Despite the recovery, trading volume across crypto investment products remained stagnant at $8 billion for the week, significantly below the 2024 average of $14.2 billion. While Bitcoin-based funds led the rebound, Ethereum-based funds continued to struggle, witnessing another week of net outflows, reflecting varying investor sentiments within the crypto market.
CoinShares’ report revealed net outflows of $19 million from Ethereum funds in the past week, adding to the $98 million in negative flows reported the previous week. The global digital currency market cap value on the 1-day chart. Source: Crypto TOTAL Market Cap on TradingView.com.
