Crypto investment products saw largest inflows in five weeks, CoinShares says

According to data from CoinShares, crypto investment products saw the biggest inflows in weeks amid positive market sentiment.

Over $530 million inflows into crypto investment products last week, the most in the last five weeks, as investors reacted to Fed Chair Jerome Powell’s mild signals at the Jackson Hole Symposium, CoinShares Head of Research James Butterfill reported.

He noted that despite trading volume being lower than in recent weeks, it “remained high, reaching $9 billion per week,” as Powell’s statements indicating a rate cut as early as September created significant movement in the markets.

Weekly crypto investment products flows | Source: CoinShares

The US led the way with $498 million in inflows, while Hong Kong and Switzerland also saw gains of $16 million and $14 million respectively. Germany bucked the trend with a total outflow of $9 million, making it “one of the only countries with net outflows since the beginning of the year,” Butterfill added.

Butterfill added that Bitcoin (BTC) was the primary beneficiary with $543 million inflows, highlighting its sensitivity to changes in interest rate expectations, with most of the BTC inflows occurring on Friday, August 23, immediately following Powell’s remarks.

Despite Ethereum (ETH) seeing contrary action with $36 million outflows last week, new Ethereum ETFs have gained momentum and have attracted $3.1 billion inflows in the past month, with CoinShares head of research noting that these inflows were “partially offset by $2.5 billion outflows from the Grayscale Trust.”