Crypto ETFs continue positive momentum with net inflows of $321 million

• Digital asset products posted a second week of inflows totaling $321 million, boosted by a 50 basis point rate cut.
• Bitcoin ETFs saw the largest inflows, totaling $284 million.
• Ethereum ETFs saw outflows of $29 million, while Solana products saw inflows of $3.2 million.

Crypto exchange-traded funds (ETFs) witnessed a second straight week of inflows totaling $321 million, according to CoinShares’ weekly report on Monday. Bitcoin ETFs saw the largest share of inflows as expected, totaling $284 million, while Ethereum products extended their outflows to five consecutive weeks of negative net outflows after shedding $29 million. dollars.

Bitcoin ETFs lead inflows of $321 million after market rebound

According to the CoinShares report, crypto investment products saw inflows of $321 million last week, fueled by a decision to cut interest rates by 50 basis points by the Federal Open Market Committee (FOMC) on Wednesday.

Following the rate cut decision, total assets under management rose 9%, while total investment product volume rose 9% week-on-week to $9.5 billion.

Weekly flow of crypto assets

Geographically, the U.S. saw the biggest inflows last week, totaling $277 million, while Switzerland posted inflows of $63 million. In contrast, Germany, Sweden, and Canada saw outflows of $9.5 million, $7.8 million, and $2.3 million, respectively.

Bitcoin ETFs continued to lead the asset class with inflows of $284 million. Bitcoin is trading at just over $63,000 at the time of writing, up more than 22% since the Federal Reserve’s (Fed) rate cut decision on Wednesday.

Bitcoin remains just shy of an August 25 high of $65,200, according to Bitfinex data. The data further suggests that a breach of the August resistance levels could propel BTC to new highs.

Conversely, short-sighted buying for Bitcoin could lead to a price consolidation or partial correction.

On the other hand, CryptoQuant data suggests that long-term support levels on the chain point to a positive outlook for BTC. The fund flow ratio’s 7-day simple moving average (SMA) reached 0.05, showing signs of a rebound.

Bitcoin fund flow

According to CryptoQuant, this rebound occurs after a bear market and the emergence of a bull market, leading to significant increases in the price of Bitcoin.

Meanwhile, Ethereum ETFs saw new outflows last week, totaling $29 million. Most of the exits came from Grayscale’s Ethereum Trust, and minimal inflows came from newly issued ETFs.