Crypto funds extend positive streak with weekly inflows of $321 million

Crypto investment products continued to receive increased interest from investors as funds posted their second consecutive week of inflows.

Global digital asset funds saw a total of $321 million in inflows last week, according to a report from crypto investment firm CoinShares. This figure, however, is slightly lower than the $436 million recorded the previous week.

Fund inflows to the United States accounted for a significant portion of the total amount recorded, with $277 million in inflows, according to the report. It was followed by Switzerland with $63 million, marking the second-highest entry this year.

Germany, Sweden and Canada, however, saw no growth as the trio saw outflows of $9.5 million, $7.8 million and $2.3 million, respectively.

Fed’s dovish stance boosts inflows

CoinShares believes the entry streak was largely influenced by the US Federal Reserve’s (Fed) decision to implement a 50 basis point interest rate cut last week. The move spurred increased investments in cryptocurrencies and other high-risk assets.

Consequently, crypto funds saw a 9% increase in their total assets under management (AUM). In addition, total investment product volume reached $9.5 billion, up 9% from the previous week.

Bitcoin leads the rise

According to CoinShares, BTC-based funds were the main beneficiaries of inflows last week, with $284 million in inflows. The report added that short bitcoin investment products saw inflows of $5.1 million as investors also took advantage of the recent bitcoin price move.

On the other hand, Ethereum funds have continued to underperform Bitcoin funds. Funds continue to see outflows for the fifth consecutive week, with outflows of $29 million last week.

CoinShares noted that the outflow streak in ETH funds was due to persistent outflows from Grayscale’s Ethereum Trust (ETHE) as well as limited inflows from newly issued ETFs.

Meanwhile, Solana’s investment products have maintained small but steady weekly inflows, with the funds posting inflows of $3.2 million last week.

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