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Driven by positive market sentiment, crypto investment products saw their largest inflows in weeks, data from CoinShares shows.
Crypto investment products attracted over $530 million in inflows last week, the highest in five weeks, as investors reacted to dovish signals from Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium, according to a report by CoinShares head of research James Butterfill.
He noted that even though trading volumes were lower than in recent weeks, they “remained high, reaching $9 billion for the week” as Powell’s remarks, hinting at a potential interest rate cut as early as September, spurred significant market activity.
While the U.S. led the inflows with $498 million, Hong Kong and Switzerland also saw gains of $16 million and $14 million, respectively. Butterfill added that Germany bucked the trend with outflows totaling $9 million, leaving it as “one of the only countries with net outflows year-to-date.”
Bitcoin ($BTC) was the primary beneficiary, with inflows of $543 million, underscoring its sensitivity to shifts in interest rate expectations, with the bulk of $BTC inflows occurring on Friday, Aug. 23, immediately following Powell’s comments, Butterfill added.
Although Ethereum (ETH) saw contrasting movements with outflows of $36 million last week, new Ethereum ETFs have gained traction, attracting $3.1 billion in inflows over the past month, the CoinShares head of research says, noting that those inflows were “partially offset by outflows from the Grayscale Trust of $2.5 billion.”