Bitcoin Rebounds with $436M Net Inflows Amidst Market Surge in Expectations

  • Crypto funds at major asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares saw a resurgence, with global net inflows reaching $436 million last week, based on CoinShares data.
  • This shift ended a two-week streak of net outflows, driven by changing market expectations for a possible 50 basis point interest rate cut on September 18, according to James Butterfill, Head of Research at CoinShares.
  • Trading volume remained relatively stagnant at $8 billion, significantly lower than the 2024 average of $14.2 billion, as noted by Butterfill in a Monday report.

The latest spike in crypto fund inflows reflects shifting market dynamics and investor sentiment, focusing on a predicted interest rate cut.

Renewed Investor Confidence in Bitcoin Funds

The spotlight was primarily on Bitcoin-based funds, which saw net weekly inflows of $436 million after enduring a 10-day phase of net outflows amounting to $1.2 billion. This renewed confidence suggests that investors are drawing back to Bitcoin amid evolving market expectations.

Global Distribution of Inflows

U.S.-based spot Bitcoin exchange-traded funds took the lead in this resurgence, contributing $403.9 million to the net weekly inflows. Meanwhile, Switzerland and Germany-based funds also performed positively, recording net inflows of $27 million and $10.6 million, respectively. Contrarily, Canada-based products faced net outflows totaling $18 million, indicating regional disparities in investment trends.

Mixed Performance Among Altcoins

Solana investment products continued their positive streak, marking the fourth consecutive week of net inflows totaling $3.8 million. However, Ethereum-based funds continued to lag, experiencing $19 million in net outflows last week, compounding the previous week’s $98 million outflows. The decreasing ratio between Bitcoin and Ether, reaching below 0.04 for the first time since April 2021, underscores Ethereum’s recent struggles.

Conclusion

The latest inflow figures underscore a renewed investor confidence in crypto assets, particularly in Bitcoin, spurred by favorable expectations regarding future interest rate cuts. Nevertheless, the lingering outflows from Ethereum-focused funds indicate ongoing challenges in the altcoin segment. Moving forward, the investment landscape will likely be shaped by macroeconomic indicators and regional investment behaviors.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Binance Futures Adds USD-Margined AIXBT, FARTCOIN, KMNO, and CGPT USDT Perpetual Contracts with 75x Leverage

Binance Futures to Launch USD-Margined AIXBT, FARTCOIN, KMNO, and...

Binance Futures Set to Introduce USD-Margined Perpetual Contracts for AIXBT, FARTCOIN, KMNO, and CGPT with 75x Leverage

Binance Futures to Launch USD-Margined AIXBT, FARTCOIN, KMNO, and...

Cryptocurrency Market Update: TSLA, MSTR, COIN, NVDA, and BTC See Diverse Price Changes

TSLA: -3.04% MSTR: +1.75% COIN: -1.23% NVDA: -1.39% BTC -1.71% --------------- 💰Coin: BTC ( $BTC )...

US Stock Exchanges See Decline as BTC Drops 2.23%: A Closer Look at the Latest Updates

US Stock Exchanges Open with Negative Performance: Dow Jones...

Fed’s Williams: Strong Economy Boosts Long-Term Yields, Impact on WELL Crypto

FED'S WILLIAMS: ECONOMY PERFORMING WELL, DRIVING UP LONG-TERM YIELDS --------------- 💰Coin: WELL...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img