Crypto investment products see $436m inflows as rate cut speculation grows

Data from CoinShares shows a reversal in crypto investment trends, with $436 million in inflows following weeks of outflows.

Cryptocurrency investment products saw their first reversal in weeks, with inflows reaching $436 million after outflows of $1.2 billion.

CoinShares Research Director James Butterfill said that the increase in inflows observed towards the end of the week was attributed to the change in expectations for a possible 50 basis point interest rate cut on September 18, and that this sentiment stemmed from the comments of former NY Fed President Bill Dudley.

Despite the wave of inflows, trading volumes in exchange-traded funds remained steady at $8 billion for the week, significantly below the $14.2 billion year-to-date average. Regionally, the US led with $416 million in inflows, while Switzerland and Germany contributed $27 million and $10.6 million, respectively.

Weekly crypto asset flows | Source: CoinShares

As usual, Bitcoin (BTC) was the primary beneficiary, reversing a 10-day streak of $1.18 billion outflows with $436 million in fresh inflows. In contrast, short Bitcoin products experienced $8.5 million in outflows after three weeks of consecutive inflows.

Meanwhile, Ethereum (ETH) faced continued challenges, recording $19 million in outflows due to concerns over layer-1 profitability after Dencun. Solana (SOL) recorded its fourth consecutive week of inflows, totaling $3.8 million. Blockchain stocks also saw a surge, with $105 million in inflows attributed to the launch of several new ETFs in the US, the data showed.

The inflows come just weeks after Bitcoin saw a sharp decline in exchange activity. In early September, daily inflows dropped by 68% from 68,470 BTC to 21,742 BTC, while outflows dropped by 65% ​​from 65,847 BTC to 22,802 BTC.