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Digital asset funds see strong inflows as Fed cuts rates
Digital asset investment products saw US$1.9bn of inflows last week, marking a positive response to the “hawkish cut” by the FED last week.
Bitcoin and Ethereum led with inflows of US$977m and US$772m respectively, while Solana (US$127.3m) and XRP (US$69.4m) also attracted strong demand.
Total AuM hit a YTD high of US$40.4bn, putting the market on track to match or slightly exceed last year’s US$48.6bn inflows.
Digital asset investment products recorded a second consecutive week of inflows, totaling US$1.9bn. After months of speculation, the US Federal Reserve cut interest rates last week. Although investors initially reacted cautiously to the so-called “hawkish cut”, inflows resumed later in the week, with US$746m entering on Thursday and Friday as markets began to digest the implications for digital assets. Total assets under management (AuM) climbed to a new year-to-date (YTD) high of US$40.4bn, on track to match or slightly exceed last year’s US$48.6bn inflows.
By region, the US led with US$1.8bn in inflows, followed by Germany (US$51.6m), Switzerland (US$47.3m), and Brazil (US$9.3m). Sentiment was broadly positive, though Hong Kong saw minor outflows of US$3.1m.
Bitcoin attracted the largest share of inflows at US$977m last week. Short-bitcoin investment products continued to struggle, posting US$3.5m in outflows and bringing total AuM down to a multi-year low of US$83m.
Ethereum also benefited, with US$772m in inflows. Year-to-date inflows have reached a record US$12.6bn, pushing total AuM to an all-time high of US$40.3bn.
Other notable inflows came from Solana (US$127.3m) and XRP (US$69.4m).
