Crypto Investment Products See $921M Inflows As Rate-Cut Hopes Rise

What Happened

Digital asset investment products attracted $921 million in inflows over the past week, rebounding after several volatile sessions.

Global ETP trading volumes surged to $39 billion, far above the yearly average, driven mainly by US and German investors.

Lower CPI Data Lifts Investor Sentiment as ETP Volumes Surge to $39B

The lower CPI print released Friday boosted investor confidence despite uncertainty caused by the ongoing US government shutdown, which has delayed key economic indicators.

Bitcoin continued to lead investor demand, recording $931 million in inflows for the week.

Solana and XRP also saw reduced inflows at $29.4 million and $84.3 million, respectively, as investors await the anticipated U.S. spot ETF launches.

Spot Ethereum exchange-traded funds (ETFs) recorded their second consecutive week of outflows, signaling cooling investor sentiment after months of strong inflows.

Meanwhile, Grayscale’s ETHE and Bitwise’s ETHW reported minor inflows, suggesting selective investor rotation rather than a broad retreat from Ethereum exposure.

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Market Context

Global trading activity also stayed strong, with ETP volumes hitting $39 billion—well above the year-to-date weekly average of $28 billion.

Cumulative inflows across all Ether ETFs now total $14.35 billion, with assets under management at $26.39 billion, or 5.55% of Ethereum’s market capitalization.

Total cumulative inflows into Bitcoin ETFs now stand at $61.98 billion, with $149.96 billion in total assets, representing 6.78% of Bitcoin’s market cap.

Why It Matters

The rise comes amid renewed optimism that US interest rates could fall later this year following softer-than-expected inflation data, according to a Monday report by CoinShares.

Details

Key Takeaways:

Digital asset funds saw $921 million in inflows last week as softer U.S. inflation data renewed hopes for rate cuts.

Bitcoin led the rebound with $931 million in inflows, while Ethereum products recorded their first outflows in five weeks.

The U.S. dominated regional inflows with $843 million, while Germany saw one of its largest weekly totals ever at $502 million.

Switzerland, meanwhile, posted $359 million in outflows, though these were attributed to asset transfers between providers rather than active selling.

Since the Federal Reserve began cutting rates, Bitcoin products have seen $9.4 billion in cumulative inflows, bringing total year-to-date inflows to $30.2 billion, still shy of last year’s $41.6 billion record.

Ethereum products, however, saw $169 million in outflows, their first in five weeks. Despite this, demand for 2x leveraged Ethereum ETPs remains strong.

Ethereum ETFs Face $244M Outflows as Bitcoin Products Regain Momentum

According to SoSoValue data, Ether products saw $243.9 million in redemptions for the week ending Friday, following $311 million in the previous week.

Outflows on Friday alone reached $93.6 million, led by BlackRock’s ETHA ETF, which posted $100.99 million in withdrawals.

In contrast, spot Bitcoin ETFs saw renewed demand, drawing $446 million in inflows over the same period. BlackRock’s IBIT and Fidelity’s FBTC led the recovery, adding $32.68 million and $57.92 million, respectively.