Crypto investment products saw renewed interest last week as investor sentiment improved following softer-than-expected U.S. inflation figures. According to CoinShares, cryptocurrency ETPs attracted $921 million in inflows — reversing the $513 million in outflows seen the previous week.
CoinShares’ head of research, James Butterfill, attributed the positive shift to increased confidence that further U.S. interest rate cuts could be coming soon. The latest Consumer Price Index data showed a 0.3% rise in September, with annual inflation landing at 3%, both below projections.
Butterfill noted that “The ongoing US government shutdown, and the resulting absence of key macroeconomic data, has left investors with little guidance on the direction of US monetary policy,” adding that the CPI report helped renew expectations for lower rates.
Bitcoin nearly erased its prior week’s outflows, recording $931 million in new inflows. Ethereum, however, saw its first weekly outflows in five weeks, totaling $169 million, with withdrawals occurring each day. Butterfill highlighted that “Despite this, 2x leveraged ETPs remain popular.”
Other major altcoin products also slowed ahead of upcoming U.S. ETF launches. Solana recorded $29.4 million in inflows, while XRP added $84.3 million — though Solana’s figure represented a drop of more than 81% week-over-week.
Butterfill commented that Bitcoin’s latest weekly inflows brought the running total since the Federal Reserve began cutting rates in September to $9.4 billion. Despite the strong recent momentum, year-to-date inflows for Bitcoin funds stand at $30.2 billion — roughly 38% below the $41.6 billion reached last year.
Across all crypto investment products, total assets under management have climbed to $229 billion, with $48.9 billion in inflows recorded so far this year.
Sources:
https://researchblog.coinshares.com/volume-257-digital-asset-fund-flows-weekly-report-e961532620b8
https://cointelegraph.com/news/crypto-funds-921-million-inflows-cpi-data-coinshares