🌎 Crypto Investment Products Surge with $530M Inflows Amid Fed Signals

Driven by positive market sentiment, crypto investment products experienced their largest inflows in weeks. Data from CoinShares shows that these products attracted over $530 million last week, the highest in five weeks. This surge was largely in response to dovish signals from Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium.

James Butterfill, CoinShares’ head of research, noted that while trading volumes were lower than in recent weeks, they remained high, reaching $9 billion for the week. Powell’s remarks, which hinted at a potential interest rate cut as early as September, spurred significant market activity.

While the U.S. led the inflows with $498 million, Hong Kong and Switzerland also saw gains of $16 million and $14 million, respectively. Butterfill added that Germany bucked the trend with outflows totaling $9 million, making it one of the few countries with net outflows year-to-date.

Bitcoin Leads the Charge

Bitcoin was the primary beneficiary, with inflows of $543 million. This underscores its sensitivity to shifts in interest rate expectations, with the bulk of BTC inflows occurring on Friday, Aug. 23, immediately following Powell’s comments.

Ethereum’s Mixed Performance

Although Ethereum saw contrasting movements with outflows of $36 million last week, new Ethereum ETFs have gained traction, attracting $3.1 billion in inflows over the past month. Butterfill noted that these inflows were partially offset by outflows from the Grayscale Trust of $2.5 billion.