Digital Asset Fund Flows | September 23rd 2024

Digital Asset Inflows of US$321m Amid FED 50bp Rate Cut

• Digital asset investment products experienced a second consecutive week of inflows, totalling US$321 million. This surge was likely driven by the Federal Open Market Committee (FOMC) decision to cut interest rate by 50bp.

• Bitcoin was the primary focus, seeing US$284m inflows, but the recent price moves also prompted inflows into short-bitcoin investment products.

• Ethereum remains an outlier, seeing outflows for the 5th consecutive week, totalling US$29.

Digital asset investment products experienced a second consecutive week of inflows, totalling US$321 million. This surge was likely driven by the Federal Open Market Committee (FOMC) comments last Wednesday, which took a more dovish stance than anticipated, including a 50 basis point interest rate cut. As a result, total assets under management (AuM) saw a 9% growth. Total investment product volumes were US$9.5bn, up 9% from the week prior.

Inflows were mixed from a regional perspective, with the US seeing inflows totalling US$277m, while Switzerland saw the second largest weekly inflows this year at US$63m. Conversely, Germany, Sweden and Canada saw outflows of US$9.5m, US$7.8m and US$2.3m respectively.

Bitcoin was the primary focus, seeing US$284m inflows, but the recent price moves also prompted inflows into short-bitcoin investment products, totalling US$5.1m.

Ethereum remains an outlier, seeing outflows for the 5th consecutive week, totalling US$29m last week. This is due to persistent outflows from the incumbent Grayscale Trust and scant inflows from the newly issued ETFs. Meanwhile, Solana investment products continue to see small but consistent weekly inflows, with inflows last week totalling US$3.2m.

More information