- Bitcoin-based investment products led the market, attracting $284 million, showing strong institutional interest in the asset.
- Solana attracted $3.2 million in inflows, while Ethereum funds faced their fifth consecutive week of outflows.
The global digital asset investment market has recently experienced a recovery, with crypto-based funds receiving $321 million in net inflows last week, as reported by CoinShares.
This marks a change from two consecutive weeks of outflows, suggesting a shift in investor sentiment. The U.S. Federal Reserve’s decision to cut interest rates played a role in this development, influencing the broader crypto market.
Bitcoin remains at the forefront of these inflows, bringing in $284 million. This increase highlights the continued interest from institutional investors.
However, there is still caution in the market, as short-Bitcoin products, designed to profit from a decrease in Bitcoin’s price, saw $5.1 million in inflows. This reflects an ongoing hedge against possible market fluctuations.
Solana also saw growth, attracting $3.2 million in net inflows. While Bitcoin and Solana gained momentum, Ethereum-based investment products recorded a fifth consecutive week of outflows. Ethereum’s products saw $29 million in outflows last week, contributing to a total of $187.7 million in outflows during this period.
Regionally, the United States led the inflows, with $277 million coming from U.S.-based funds. Switzerland followed with $63 million in inflows, while countries such as Germany, Sweden, and Canada reported net outflows. This reflects varying investment trends in different regions.
The recent surge in Bitcoin and Solana investments is linked to changes in U.S. monetary policy. The Federal Open Market Committee’s (FOMC) decision to reduce interest rates by 50 basis points created a more favorable environment for risk assets, including cryptocurrencies.
As a result, Bitcoin’s price has risen above the $60,000 mark, currently trading at $62,775. Although there was a slight decrease of 1.1% over the past day, Bitcoin’s market capitalization has increased from $1.15 trillion to over $1.25 trillion, indicating sustained market interest and confidence.
