Crypto ETFs post net inflows of $436M as hope of 50bp rate cut resurfaces

• Digital asset ETFs saw net inflows of $436 million last week.
• Bitcoin ETFs moved to positive net inflows of $436 million last week after ten days of consistent outflows.
• Ethereum ETFs expanded their outflows by $19 million, while Solana ETFs saw minor positive inflows.

CoinShares’ weekly report revealed that crypto exchange-traded funds (ETFs) saw inflows of $436 million last week, after hopes that the Federal Reserve (Fed) would cut interest rates by 50 basis points briefly boosted time investor confidence.

Bitcoin ETFs regain inflows totaling $436 million, ETH ETFs suffer losses of $19 million

According to CoinShares’ weekly report, digital asset investment products saw flows of $436 million last week. However, trading volumes fell to $8 billion, below the average weekly volume of $14.2 billion this year.

CoinShares noted that the inflows followed Friday’s statement by former New York Fed President Bill Dudley suggesting a strong possibility of a 50 basis point interest rate cut later this week.

Regionally, the US saw the highest inflows, totaling $416 million. Switzerland and Germany followed, with receipts of $27 million and $10.6 million, respectively. Canada and Sweden witnessed outflows of $17.9 million and $4.6 million, respectively.

Bitcoin ETFs regained their lead among crypto asset classes, reaching $436 million in inflows last week, after ten consecutive days of outflows totaling $1.18 billion.

Weekly flows of crypto assets

Last week’s investor confidence is also visible in Bitcoin exchange deposit addresses, which hit their lowest figure since 2016 after falling to 132,100 addresses, according to CryptoQuant data. This indicates reduced selling pressure on spot exchanges.

However, Bitcoin’s MVRV momentum indicator has been on a downtrend since BTC’s initial dip below $66,750 in June. The declining momentum in MVRV shows that buyers have yet to initiate pronounced buying pressure to fuel sustained price growth.

Meanwhile, Ethereum ETFs saw $19 million in new outflows following strong negative flows from Grayscale’s Ethereum Trust. The weak flows may stem from concerns about Ethereum Layer 1 profitability following a drop in token consumption and validation revenue since the Dencun update in March.

In contrast, Solana products saw revenues of $3.8 million.