Crypto ETFs Attract $1B in Fresh Capital Ahead of Expected Fed Rate Cut
- Crypto ETFs recorded nearly $1 billion in weekly inflows, marking one of the strongest performances since mid-year.
- The United States led the inflow race with $843 million, while Germany saw $502 million.
- Bitcoin was the primary driver, pulling in $931 million, pushing cumulative inflows to $9.4 billion since the current rate-cut cycle began.
- Ethereum experienced its first withdrawals in five weeks, with $169 million leaving the asset class.
- Weekly trading volume for crypto ETFs hit $39 billion, significantly above the year-to-date average of $28 billion.
The surge in crypto ETF inflows comes as investors anticipate a potential Federal Reserve rate cut this week, following softer-than-expected inflation data and rising unemployment claims. This optimism has contributed to increased trading volumes and investor confidence across the market.
As Bitcoin continues to dominate ETF inflows with $931 million last week, overall market sentiment remains bullish ahead of expected policy adjustments from the Federal Reserve. (Source)
