Hey there, crypto enthusiasts! Have you noticed the buzz around crypto investments lately? Well, we've got some exciting news straight from the folks at CoinShares.
Crypto investment products are riding a wave of investor interest, with funds seeing their second week in a row of inflows. Last week alone, global digital asset funds raked in a cool $321 million. While that's a tad lower than the previous week's $436 million, it's still a pretty impressive haul.
The US led the charge, contributing a whopping $277 million to the total inflows. Switzerland wasn't too far behind, pulling in $63 million, which marks its second-largest inflows this year. Unfortunately, not everyone was celebrating – Germany, Sweden, and Canada saw outflows of $9.5 million, $7.8 million, and $2.3 million, respectively.
So, what’s behind this influx of crypto cash? CoinShares points to the US Federal Reserve's decision to cut interest rates by 50 basis points last week. This move sparked a surge in investments in cryptocurrencies and other high-risk assets.
As a result, crypto funds enjoyed a 9% boost in their total assets under management (AUM). Investment product volumes also saw a 9% rise, reaching $9.5 billion.
Bitcoin-based funds were the big winners, soaking up $284 million in inflows. Even short-bitcoin investment products got in on the action, attracting $5.1 million as investors capitalized on Bitcoin's recent price movements.
But it wasn’t all sunshine and rainbows. Ethereum funds continued to struggle, recording outflows for the fifth week straight, with $29 million walking out the door last week. According to CoinShares, this was largely due to ongoing outflows from Grayscale’s Ethereum Trust (ETHE) and limited inflows from new ETFs.
On a brighter note, Solana investment products held their ground with a steady stream of weekly inflows, pocketing $3.2 million last week.
Stay tuned, crypto fans! It looks like the market is heating up, and there’s plenty more action on the horizon.
