Global crypto investment products managed by asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares recorded net inflows of $1.9 billion for the second consecutive week in a row, according to CoinShares’ data.
After months of speculation, the U.S. Federal Reserve finally cut rates by 25 bps on Wednesday, helping to fuel the strong inflows, CoinShares Head of Research James Butterfill wrote in a Monday report.
“Although investors initially reacted cautiously to the so-called ‘hawkish cut,’ inflows resumed later in the week, with $746 million entering on Thursday and Friday as markets began to digest the implications for digital assets,” Butterfill said.
Those additions, alongside relatively stable prices into the end of the week, saw total assets under management at the funds climb to a new year-to-date high of $40.4 billion — on track to match or slightly exceed 2024’s $48.6 billion total inflows, Butterfill noted.
Weekly crypto asset flows. Images: CoinShares.
However, crypto markets subsequently fell early Monday as more than $1 billion in predominantly long positions were liquidated in less than an hour amid a broad selloff. Bitcoin fell 3% in the past 24 hours to trade at $112,418, while ether has dropped 7.2% to $4,157, according to The Block’s prices page. Meanwhile, the GMCI 30 index of leading cryptocurrencies is down 5.9% during the past day at 216.99.
Bitcoin and US continue to dominate
Regionally, U.S.-based digital asset investment products led with $1.8 billion in net inflows. Crypto funds in Germany, Switzerland, and Brazil also saw inflows of $51.6 million, $41.3 million, and $9.3 million, respectively, amid broadly positive sentiment, Butterfill said. Sweden and Hong Kong’s crypto products were the only outliers, losing $13.6 million and $3.1 million last week.
Bitcoin-based funds again witnessed the largest share of inflows, attracting $977 million. Meanwhile, short Bitcoin products saw further modest outflows of $3.5 million — with AUM now at multi-year lows.
The U.S. spot Bitcoin exchange-traded funds accounted for $886.5 million of the inflows alone, according to data compiled by The Block, led by BlackRock’s IBIT with $866.8 million.
Ethereum products also saw further inflows, bringing in $772 million last week, with the U.S. spot Ethereum ETFs contributing $557 million.
Additionally, Solana and XRP funds witnessed notable interest, generating $127.3 million and $69.4 million worth of net inflows, respectively.
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