Crypto products see inflows of $321 million, Ethereum funds lag behind

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Crypto products saw inflows of $321 million last week, with the exception of Ethereum (ETH) funds, which saw negative net inflows of $28.5 million.

As reported by CoinShares, this disconnect between Ethereum funds and the rest of the market is caused by Grayscale’s spot Ethereum ETF (ETF), which continues to see outflows, along with a slow pace of ETH ETFs.

As a result, last week marked the fifth consecutive week of outflows for ETH funds.

Meanwhile, Bitcoin (BTC) dominated inflows with $284 million, accompanied by $5.1 million in Bitcoin shorts. Moreover, Solana products maintained a consistent pattern of small entries, pulling in $3.2 million last week.

The report highlighted that the flow of money into crypto funds is likely driven by the 50 basis point interest rate cut by the Federal Open Market Committee (FOMC) last week.

As a result, total assets under management (AUM) of these products increased by 9%, while volumes reached $9.5 billion, also up 9% from the previous week.

Regionally, the US led with $277 million, followed by Switzerland with $63 million. Germany, Sweden, and Canada saw outflows of $9.5 million, $7.8 million, and $2.3 million, respectively.

Bitcoin ETFs reverse exits

U.S.-traded spot Bitcoin ETFs saw nearly $1 billion in outflows between August 26 and September 6 during one of BTC’s recent selloffs.

However, most of the losses were recovered in the following two weeks, as these funds collected inflows of $801 million between September 9 and 20, according to Farside Investors data.

For the second week in a row, Fidelity’s FBTC dominated inflows, with nearly $138 million of capital flowing to the US-traded BTC ETF. It was closely followed by ARK 21Shares’ ARKB, which captured inflows of about $102 million.

Furthermore, Grayscale’s GBTC outflows have moved at a slow pace, totaling $28.9 million in cash fleeing Bitcoin ETFs last week.

In particular, US-traded Bitcoin ETF flows saw an interesting move related to the Fed’s interest rate cut last week. The day with the largest amount of inflows was September 17, the day before the FOMC meeting, with $186.8 million in cash going to Bitcoin ETFs.

However, after the 50 basis point cut was announced, these funds saw negative flows of $52.7 million. It was the only day that closed with exits last week.

Ethereum ETFs are still lagging behind

On a change of tone, US-traded Ethereum ETFs saw outflows of $26.2 million last week. This move is a combination of the lack of activity of these funds and the steady and gradual flow of Grayscale’s ETHE flows.

Five of the nine Ethereum ETFs were dormant between September 16 and 20, when ETHE outflows totaled $46.4 million.

BlackRock’s ETHA saw the most inflows, with $14.3 million in cash flowing into the fund.

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