Crypto investment products saw over $530 million in inflows last week, the highest in five weeks, according to a new report from CoinShares.
According to the report, the United States led the inflows with $498 million, while Hong Kong and Switzerland saw gains of $16 million and $14 million, respectively. In contrast, Germany recorded outflows of $9 million, making it one of the few countries with net outflows year-to-date.
Bitcoin attracted the largest inflows, totalling $543 million, while Ethereum experienced outflows of $36 million in the last seven days. The Ethereum ETFs reportedly attracted $3.1 billion in inflows over the past month. However, these gains were partially offset by $2.5 billion in outflows from the Grayscale Trust’s fund.
The investment management firm’s analyst, James Butterfill, noted that market activity remained robust despite lower trading volumes than in recent weeks, totalling $9 billion. According to him, this surge was driven by Federal Reserve Chair Jerome Powell’s comments at the Jackson Hole Symposium, which suggested a potential interest rate cut as early as September. Buttefill pointed out that most of these inflows recorded in the past seven days occurred on Friday, August 23, the day Powell made the remarks.
In July, CoinShares attributed the surge in global crypto investment to two main factors: the German government’s Bitcoin sales and lower-than-expected U.S. Consumer Price Index (CPI) data. At the time, the crypto investment products market saw a record $1.44 billion in net inflows that week. The report highlighted that the German government’s liquidation of over 50,000 BTC significantly impacted market dynamics. It also claimed that the lower-than-expected U.S. CPI figures boosted investor confidence in cryptocurrencies, positioning them as a potential hedge against inflation and an appealing alternative in a low-interest-rate environment.
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