Bitcoin led the recovery rally as crypto investment products experienced a reversal after two weeks of consecutive outflows totaling $1.2 billion. Data shows that inflows reached $436 million.
According to the latest report from CoinShares, the surge in inflows towards the end of the week was primarily due to market expectations for a potential 50 bps rate cut on September 18th. This change in sentiment followed comments from former NY Federal Reserve President Bill Dudley.
Bitcoin enjoyed $436 million in inflows
CoinShares mentioned that trading volumes in ETFs stood flat in the past week at $8 billion. This is considerably lower than the average of $14.2 billion in 2024.
Bitcoin enjoyed most of this renewed investor interest with $436 million in inflows. This is after experiencing a 10-day run of outflows totaling $1.18 billion. Conversely, short-bitcoin products saw outflows of $8.5 million. This was a reversal of a three-week trend of inflows.
However, the story was different with Ethereum. Investment products tethered to the number one altcoin experienced outflows of $19 million. CoinShares attributes this negative sentiment to concerns over Layer 1 profitability following recent developments. In contrast, Solana saw its fourth consecutive week of inflows, totaling $3.8 million.
US-based products enjoyed $416 million in inflows
Overall, it appears that crypto investment products finally moved in a positive direction after two weeks of consecutive outflows.
In terms of regional comparison, the United States witnessed $416 million in inflows. Switzerland and Germany also witnessed inflows of $27 million and $10.6 million respectively. However, Canada saw outflows of $18 million.
The crypto market started off on a negative note on Monday. CoinMarketCap data shows that market cap has dropped 2.6% in the last 24 hours. Bitcoin is down by 2.2% in the last 24 hours and is trading at $58,690. Bitcoin has once again fallen below the $60,000 level after it hit the $64,000 range over the last few days.
Ethereum suffered the most, with a 4.5% drop during this period. ETH is hovering around the $2,300 level, down from the $2,400 level. The top 20 altcoins also suffered, with a single-digit price drop in the last 24 hours.
