2 min readRate cut optimism aid inflows of US$921m in to digital asset product
Digital asset investment products saw inflows of US$921M, supported by improving investor confidence after lower-than-expected US CPI data.
US inflows led at US$843M, with Germany also strong at US$502m, while Switzerland saw US$359M in outflows due to asset transfers rather than selling.
Bitcoin dominated with US$931M inflows, while Ethereum recorded US$169M outflows; Solana and XRP flows cooled ahead of anticipated US ETF launches.
Digital asset investment products saw inflows totalling US$921m, following several choppy weeks. The ongoing US government shutdown, and the resulting absence of key macroeconomic data, has left investors with little guidance on the direction of US monetary policy. However, the lower-than-expected CPI data released on Friday helped restore some confidence that further rate cuts are likely this year. Trading volumes in ETPs globally remained robust, reaching US$39b for the week, well above the year-to-date (YTD) weekly average of US$28B.
Regionally, the US led with significant inflows totalling US$843m, while Germany recorded one of its largest weekly inflows on record at US$502m. In contrast, Switzerland saw outflows of US$359m, primarily driven by an asset transfer between providers rather than genuine selling pressure.
Bitcoin saw inflows totalling US$931m, bringing cumulative inflows since the US Federal Reserve began cutting interest rates to US$9.4B. YTD inflows now stand at US$30.2B, still below the US$41.6B recorded last year.
Ethereum saw outflows for the first time in 5 weeks totalling US$169M, with consistent daily outflows throughout the week, despite this, 2x leveraged ETPs remain popular. Flows in Solana and XRP have cooled in the run up to the US ETF launches with US$29.4M and US$84.3M respectively.
