Cryptocurrency funds have experienced a notable resurgence, marking a second consecutive week of inflows that have extended the previous gains of $3.3 billion. Data released by CoinShares indicates that cryptocurrency exchange-traded products (ETPs) garnered approximately $1.9 billion in inflows last week alone.
Leading this upward trend were Bitcoin (BTC) and Ether (ETH), which attracted inflows of $977 million and $772 million, respectively. Other cryptocurrencies also saw significant demand, with Solana (SOL) and XRP (XRP) registering inflows of $127 million and $69 million. As a result, the total assets under management (AUM) in global crypto ETPs have surged to a record high of $40.4 billion year-to-date, as highlighted by James Butterfill, the head of research at CoinShares.
Bitcoin funds in particular have enjoyed a sustained inflow streak, attracting the largest share of investment. They recorded $2.4 billion in inflows the previous week, with last week’s figures bringing the total to $3.9 billion over four consecutive weeks, according to SoSoValue data. On the other hand, short-Bitcoin ETPs continue to struggle, reporting $3.5 billion in outflows, leading to a multiyear low in total AUM of just $83 million.
Ether ETPs also performed well, achieving fresh inflows that have pushed their year-to-date totals to a substantial $12.6 billion. These positive developments come on the heels of the Federal Reserve’s decision to cut key interest rates by 0.25 points, marking its first cut of the year. Butterfill noted that despite initial investor caution regarding the rate cut, there was a resumption of inflows later in the week.
After the Federal Reserve’s announcement, crypto prices experienced slight volatility, with Bitcoin climbing to multi-week highs above $117,000 on Thursday, according to data from CoinGecko. Ether also witnessed a short surge above $4,600 after beginning the week at around $4,500.
However, despite the encouraging inflows and rising prices, investor sentiment appears to remain cautious. The Crypto Fear & Greed Index, which gauges the overall market sentiment, reported a neutral score of 53 last week but dipped to a score of 45, reflecting a shift into “Fear” by Monday. This mix of enthusiasm and apprehension underscores a complex landscape in the cryptocurrency market as investors navigate ongoing developments.
