Crypto ETPs Experience $1.9 Billion Inflows, Boosting AUM Over $40 Billion

Cryptocurrency funds experienced a second consecutive week of inflows last week, building on the $3.3 billion gains from the previous week.

Crypto exchange-traded products (ETPs) saw $1.9 billion in inflows last week, as reported by CoinShares on Monday.

Bitcoin (BTC) and Ether (ETH) were the leaders with inflows of $977 million and $772 million respectively, while Solana (SOL) and XRP (XRP) also enjoyed significant interest with inflows of $127 million and $69 million.

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

Bitcoin funds extend inflow streak to four weeks

Bitcoin funds continued to gain traction last week, capturing the largest share of inflows after previously hitting $2.4 billion the week prior.

The latest inflows signify the fourth consecutive week of growth for Bitcoin exchange-traded funds (ETFs), totaling $3.9 billion over four weeks, according to SoSoValue.

In contrast, short-Bitcoin ETPs continued facing challenges, recording $3.5 billion in outflows and a total AUM that has fallen to a multiyear low of $83 million.

Ether ETPs also experienced robust investor interest last week, with new inflows pushing their 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 reducing the key US interest rate by 0.25 points last Wednesday, marking its first cut of the year.

As noted by CoinShares’ Butterfill, these inflows represent a favorable response to the interest rate reduction, despite initial investor caution.

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 were initially cautious regarding the ‘hawkish cut,’ inflows picked up later in the week,” Butterfill stated.

After the Fed’s rate cut, spot crypto prices experienced slight volatility, with Bitcoin reaching multi-week highs above $117,000 on Thursday, as per CoinGecko data.

Ether also briefly spiked above $4,600 on Thursday, having started the week at around $4,500.

Despite significant inflows and increasing prices, investor sentiment remained cautious last week, according to the Crypto Fear & Greed Index, which gauges the overall sentiment in the cryptocurrency market.

Data from Alternative.me indicated that the Crypto Fear & Greed Index was neutral last week with a score of 53. The index fell to “Fear” on Monday, recording a score of 45.