Crypto investment funds see $1.2B inflows

Digital asset investment products recorded $1.2 billion in inflows last week, marking the highest level since mid-July, according to a report from CoinShares.

This represents the third consecutive week of positive inflows, driven largely by expectations of potential interest rate cuts in the U.S. market.

The majority of the inflows, amounting to $1.17 billion, came from U.S.-based funds, with Bitcoin products leading the way.

Bitcoin funds saw over $1 billion in inflows, reflecting strong investor confidence.

Meanwhile, Ether (CRYPTO:ETH) products broke a five-week losing streak by adding $87 million in net inflows, the first significant increase in these products since early August.

The report from CoinShares highlights that the approval of physically settled options tied to BlackRock’s Bitcoin ETF likely boosted market sentiment.

The approval is seen as a positive regulatory development for the U.S. Bitcoin (CRYPTO:BTC) exchange-traded fund sector.

However, CoinShares noted that despite the strong inflows, trading volumes declined slightly, down 3.1% week-on-week.

While Bitcoin continues to dominate inflows, the resurgence of interest in Ether products could signal a broader recovery across the digital asset market.

The recent surge in inflows aligns with improving market conditions and a more optimistic outlook for the future of cryptocurrencies.

Overall, the positive inflows reflect growing investor confidence as regulatory clarity improves and macroeconomic factors such as potential interest rate adjustments influence the digital asset market.

As U.S.-based funds continue to attract significant capital, Bitcoin and Ether products remain focal points for investors, with both showing strong potential for further gains in the coming weeks.