The digital asset investment landscape saw a remarkable surge last week with $2 billion in inflows, led by Bitcoin (BTC), which garnered $1.97 billion. Ethereum (ETH) also stood out with significant inflows, capturing the spotlight.
This momentum extends a five-week streak, bringing total inflows to $4.3 billion and boosting trading volumes in crypto Exchange-Traded Products (ETPs) to $12.8 billion, marking a 55% increase from the previous week.
The inflows were driven by weaker-than-expected macroeconomic data in the US, leading to anticipations of earlier monetary policy rate cuts and pushing total assets under management (AuM) beyond $100 billion for the first time since March. Bitcoin remained the primary focus, while short-Bitcoin products saw outflows for the third consecutive week.
Ethereum experienced its best week of inflows since March, totaling $69 million, likely due to the SEC’s approval of 19-b4s for Spot Ethereum ETFs. This underscores Ethereum’s growing appeal and broader acceptance.
Crypto enthusiasts are closely watching key inflation data, including the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI), due this week. The EU Central Bank’s rate cut also fueled optimism for a potential Fed rate cut, driving Bitcoin prices higher. However, the Federal Reserve is not expected to make immediate rate cuts.
This surge in investment reflects a strategic shift in market sentiment towards a bullish outlook on Bitcoin and Ethereum, highlighting their long-term potential and appeal.
