23 Sep
23Sep

Global crypto funds managed by leading asset managers, including BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, have rebounded impressively, adding a net inflow of $321 million last week, as reported by CoinShares. This marks the second consecutive week of inflows following two weeks of net outflows, signaling a renewed interest in cryptocurrency investments.

Dovish Comments Fueling Growth

The surge in inflows is largely attributed to comments from the Federal Open Market Committee (FOMC) last Wednesday, which adopted a more dovish stance than expected, including a 50 basis point interest rate cut. James Butterfill, Head of Research at CoinShares, noted that these developments likely boosted investor sentiment, contributing to a 9% increase in total assets under management across these funds. Trading volume also rose by 9% week-over-week, reaching $9.5 billion.

Bitcoin Products Lead the Way

As is often the case, Bitcoin-based investment products dominated the inflows, attracting $284 million last week. The recent positive price movements of Bitcoin have also drawn attention to short-bitcoin funds, which saw inflows of $5.1 million. This continued interest underscores Bitcoin’s leading role in the cryptocurrency space.

Mixed Performance for Ether and Solana

In contrast, ether-based investment products faced a challenging week, experiencing $29 million in net outflows. This marks the fifth consecutive week of negative movement, totaling $187.7 million in outflows. The ongoing trend can be largely attributed to consistent withdrawals from Grayscale's higher-fee fund, ETHE, which has seen a total of $2.8 billion in outflows since its conversion, overshadowing the $2.2 billion in inflows from newly launched U.S. spot Ethereum ETFs.

On a more positive note, Solana-based funds added $3.2 million in net inflows last week, buoyed by several announcements at the Solana Breakpoint conference in Singapore, indicating a growing interest in this blockchain's potential.

Regional Insights

Regionally, U.S.-based funds continued to lead the way, securing $277 million in net inflows. Switzerland's registered investment products marked their second-largest weekly inflows of the year, adding $63 million. However, funds in Germany, Sweden, and Canada recorded net outflows of $9.5 million, $7.8 million, and $2.3 million, respectively, reflecting varied regional interest in cryptocurrency investments.

Conclusion

Overall, the latest data highlights a significant rebound in global crypto funds, primarily driven by Bitcoin’s resilience and the positive effects of macroeconomic factors. As investors navigate the evolving landscape, the performance of ether and emerging blockchain projects like Solana will be critical in shaping future investment trends. With the cryptocurrency market showing renewed vigor, stakeholders remain optimistic about the weeks ahead.

September 2024, Cryptoniteuae

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