Digital Asset Fund Flows Rebound with $436M Inflows, Bitcoin (BTC) Leads

Terrill Dicki Sep 16, 2024 08:17

Digital asset investment products see $436M inflows after $1.2B outflows, driven by market expectations for interest rate cuts.

Digital asset investment products experienced a notable rebound, with inflows amounting to $436 million following a period of outflows totaling $1.2 billion, according to CoinShares. This resurgence in investor interest was largely attributed to a significant shift in market expectations for a potential 50 basis point interest rate cut, anticipated on September 18th.

Bitcoin (BTC) Drives Inflows

Bitcoin (BTC) was the primary beneficiary, seeing inflows of $436 million after experiencing a 10-day streak of outflows that amounted to $1.18 billion. Short-bitcoin positions also reversed, with outflows of $8.5 million following three consecutive weeks of inflows.

Ethereum (ETH) Faces Continued Challenges

In contrast, Ethereum (ETH) continued to struggle, recording outflows of $19 million. This trend is believed to be driven by ongoing concerns over Layer 1 (L1) profitability.

Regional Inflows and Outflows

Regionally, the United States led the inflows with a total of $416 million. Switzerland and Germany also saw significant inflows of $27 million and $10.6 million, respectively. On the other hand, Canada experienced minor outflows totaling $18 million.

Other Notable Movements

Solana (SOL) recorded its fourth consecutive week of inflows, amounting to $3.8 million. Blockchain equities also saw a positive trend, with inflows of $105 million following the launch of several new ETFs in the United States.

Trading volumes in ETFs remained flat at $8 billion for the week, significantly lower than the average of $14.2 billion observed so far this year.

For more detailed insights, visit the CoinShares blog.

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• digital assets
• bitcoin
• ethereum
• investment