Crypto ETFs see net inflows of $533 million as possibility of rate cut boosts investor confidence

• Digital asset products saw $533 million in flows last week after Jerome Powell hinted at a rate cut in September.
• Bitcoin saw inflows of $543 million as investors started pouring in on Friday.
• Ethereum saw new outflows last week, with other altcoins seeing little or no inflow.

Crypto ETFs posted their biggest inflows in five weeks after Jerome Powell hinted at the possibility of the Federal Reserve (Fed) cutting interest rates in September during his speech at the Jackson Hole Symposium. Meanwhile, the altcoin investment market saw little to no inflows, with Ethereum ETFs seeing $35.7 million in outflows last week.

Digital asset investment products see renewed investor interest following $543m inflows

Crypto ETFs saw net inflows of $533 million last week, according to CoinShares’ weekly report. This is the biggest flow among cryptoETFs in the last five weeks as the crypto market witnessed another week of recovery from the August 5 market pullback.

Crypto ETF Streams

The increased flows were largely influenced by Fed Chairman Jerome Powell’s speech at the Jackson Hole Symposium on Friday, in which he suggested that the time has come for the Feds to cut interest rates if the economic data aligns.

The US remained dominant regionally, with receipts totaling $498 million, followed by Hong Kong with $15.9 million. Switzerland also saw inflows last week, totaling $13.9 million after a previous week of outflows. Brazil was a little behind with $8 million inflows. However, German investors continued to divest, recording $8.9 million in outflows last week.

In terms of assets, Bitcoin ETFs were mainly responsible for the net inflows, witnessing a positive $543 million last week. The increase in flows suggests Bitcoin’s high sensitivity to the possibility of an interest rate cut, as nearly 50% of flows came in the wake of Powell’s speech on Friday. This is also evident in the price of Bitcoin, which saw a 7% increase to $64,000 on Friday.

Meanwhile, altcoins saw negative flows last week, with global Ethereum ETFs posting net outflows totaling $35.7 million.

According to CoinShares, Ethereum ETFs saw inflows of $3.1 billion since the launch of US ETH spot ETFs, but this was largely offset by strong negative flows from Grayscale Ethereum Trust (ETHE), which saw outflows of $2.5 billion.