Crypto ETPs Experience $1.9 Billion Inflows as Assets Under Management Exceed $40 Billion

Last week, cryptocurrency funds experienced inflows for the second consecutive week, building on the previous week’s $3.3 billion gains.

According to data from CoinShares published on Monday, crypto exchange-traded products (ETPs) saw $1.9 billion in inflows.

Leading the inflows were Bitcoin (BTC) and Ether (ETH), which garnered $977 million and $772 million, respectively, while Solana (SOL) and XRP (XRP) showed robust interest with inflows of $127 million and $69 million.

With these latest gains, the total assets under management (AUM) in global crypto ETPs reached a record high of $40.4 billion year-to-date, stated CoinShares’ head of research, James Butterfill.

Bitcoin funds extend inflow streak to four weeks

Bitcoin funds continued their momentum last week, receiving the largest share of inflows after accumulating $2.4 billion the week prior.

The new inflows represent the fourth consecutive week of gains for Bitcoin exchange-traded funds (ETFs), bringing the total for the four weeks to $3.9 billion, according to SoSoValue.

Conversely, short-Bitcoin ETPs faced difficulties, suffering $3.5 billion in outflows and seeing total AUM drop to a multi-year low of $83 million.

Investor demand for Ether ETPs also remained strong last week, with new inflows pushing year-to-date totals to an all-time high of $12.6 billion, according to CoinShares data.

Positive response to the Fed’s rate cut

The recent inflows into crypto funds coincided with the US Federal Reserve’s decision to cut the key US interest rate by 0.25 points last Wednesday, marking its first reduction of the year.

According to CoinShares’ Butterfill, these inflows reflect a favorable response to the interest rate cut, despite initial hesitance from investors.

Related: Bitcoin and alts set for Fed ‘jolt,’ market isn’t ready: Economist

“Following months of speculation, the US Federal Reserve cut interest rates last week. Although investors reacted cautiously to this so-called ‘hawkish cut’, inflows resumed later in the week,” Butterfill noted.

In the aftermath of the Fed’s rate adjustment, spot crypto prices experienced slight volatility, with Bitcoin reaching multi-week highs exceeding $117,000 on Thursday, according to CoinGecko data.

Additionally, Ether briefly surged past $4,600 on Thursday after starting the week around $4,500.

Despite the solid inflows and rising prices, the overall investor sentiment remained cautious last week, as indicated by the Crypto Fear & Greed Index, which gauges sentiment in the cryptocurrency market.

Data from Alternative.me shows that the Crypto Fear & Greed Index was neutral last week, scoring 53. On Monday, the index shifted to “Fear,” with a score of 45.