Key points
- Digital asset investment products saw inflows of $321 million following the Federal Reserve's dovish stance.
- ethereum experienced its fifth consecutive week of outflows, totaling $29 million.
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crypto products saw inflows of $321 million last week, excluding ethereum (eth) funds, which saw $28.5 million in negative net flows.
As reported According to CoinShares, this disconnect between ethereum funds and the rest of the market is caused by Grayscale’s spot ethereum exchange-traded fund (ETF), ETHE, continuing to see outflows alongside a slow pace of eth ETFs.
As a result, last week marked the fifth consecutive week of eth fund outflows.
Meanwhile, bitcoin (btc) dominated inflows with $284 million, accompanied by $5.1 million in bitcoin short products. Additionally, Solana products maintained a consistent pattern of small inflows, attracting $3.2 million last week.
The report highlighted that the flow of money into crypto funds is likely driven by the 50 basis point interest rate cut by the Federal Open Market Committee (FOMC) last week.
As a result, total assets under management (AUM) for these products grew by 9%, while volumes reached $9.5 billion, also 9% higher than the previous week.
Regionally, the United States topped the list with $277 million in inflows, followed by Switzerland with $63 million. Germany, Sweden and Canada recorded outflows of $9.5 million, $7.8 million and $2.3 million respectively.
bitcoin ETFs reverse outflows
US-traded bitcoin spot ETFs saw outflows of nearly $1 billion between August 26 and September 6 during one of the recent btc sell-offs.
However, most of the losses were recovered in the following two weeks, as these funds racked up $801 million in inflows between Sept. 9 and Sept. 20, according to Farside Investors. bitcoin-etf-flow-all-data/” rel=”noopener nofollow noreferrer”>data.
For the second week in a row, Fidelity’s FBTC dominated capital inflows, with nearly $138 million of capital flowing into the US-listed btc ETF. It was closely followed by ARK 21Shares’ ARKB, which captured approximately $102 million in inflows.
Additionally, Grayscale’s GBTC outflows moved at a slow pace, amounting to $28.9 million of cash fleeing bitcoin ETFs last week.
It is worth noting that US-traded bitcoin spot ETF flows saw an interesting move related to the Fed rate cut last week. The day with the most inflows was on September 17, a day before the FOMC meeting, with $186.8 million in cash heading into bitcoin ETFs.
However, after the announcement of the 50 basis point cut, these funds registered negative flows of 52.7 million dollars. That was the only day that closed with outflows last week.
ethereum ETFs continue to lag
In a change of tone, US-listed ethereum ETFs saw outflows of $26.2 million last week. This move is a combination of the lack of activity from these funds and Grayscale’s streak of steady and gradual ETHE outflows.
Five of the nine ethereum ETFs were inactive between September 16 and September 20, when ETHE outflows amounted to USD 46.4 million.
BlackRock's ETHA saw the most inflows, with $14.3 million in cash flowing into the fund.
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