Daniel Walker
Global cryptocurrency funds managed by firms like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares saw a second consecutive week of recovery, with net inflows reaching $321 million last week, according to CoinShares. This follows two weeks of net outflows.
โThis upswing likely stemmed from the Federal Open Market Committee (FOMC) meeting last Wednesday, where a more dovish tone was adopted than expected, including a 50 basis point cut in interest rates,โ wrote CoinShares Head of Research James Butterfill in a report released on Monday.
As a result, the total assets under management for these funds increased by 9%, with trading volumes also rising 9% compared to the previous week, reaching $9.5 billion, Butterfill noted.
Bitcoin Products Lead the Way, While Ether Funds Continue to Struggle
Bitcoin-based investment products were the primary drivers of inflows, bringing in $284 million globally last week. Interestingly, short-bitcoin funds also saw net inflows of $5.1 million, likely due to recent positive price movements in Bitcoin, Butterfill said.
Solana-based funds continued to perform well, with $3.2 million in net inflows, spurred on by a series of announcements at the Solana Breakpoint conference in Singapore.
On the other hand, ether-based investment products experienced another challenging week, with $29 million in net outflows, extending a five-week streak of negative performance that has now totaled $187.7 million in outflows.
This decline is largely attributed to ongoing outflows from Grayscaleโs higher-fee legacy fund, ETHE, which has seen $2.8 billion in net outflows since it began trading in July, compared to $2.2 billion in net inflows into the newly launched U.S. spot Ethereum ETFs, Butterfill explained.
Regional Performance: U.S. Leads, Europe Sees Mixed Results
U.S.-based crypto funds remained dominant, recording $277 million in net inflows. Switzerland also saw strong performance, registering $63 million in net inflows, marking its second-highest weekly figure this year. However, funds in Germany, Sweden, and Canada saw net outflows of $9.5 million, $7.8 million, and $2.3 million, respectively.
