Last week, the cryptocurrency fund experienced its second consecutive week of inflows, building on the $3.3 billion profit from the prior week.
Crypto Exchange-Traded Products (ETPs) saw a total influx of $1.9 billion, as highlighted by data from Coinshares on Monday.
Bitcoin (BTC) and Ether (ETH) were the frontrunners, attracting inflows of $977 million and $772 million, respectively. Additionally, Solana (SOL) and XRP (XRP) showed strong interest, with inflows of $127 million and $69 million.
These recent gains have propelled the total assets under management (AUM) of global Crypto ETPs to a record $40.4 billion, according to James Butterfil.
Bitcoin Funds Maintain Inflow Streak
The Bitcoin fund continued its upward trend last week, drawing the highest portion of inflows after exceeding the previous week’s $2.4 billion profit.
This latest influx marked the fourth straight week of gains for Bitcoin Exchange Traded Funds (ETFs), bringing the total over the past month to $3.9 billion, as reported by So-so Value.
Contrarily, the short Bitcoin ETP faced difficulties, dropping to a multi-year low with $3.5 billion in outflows and an AUM of just $83 million.
Ether ETP also performed well last week, recording inflows that pushed its annual total to an impressive $12.6 billion, according to CoinShares.
Market Reacts to Fed’s Interest Rate Cuts
The recent surge in crypto funds followed a 0.25 percentage point drop in US key interest rates last Wednesday, marking the first cut of the year.
James Butterfil from CoinShares noted that this inflow indicated a positive market response to the interest rate reduction, despite earlier warnings from some investors.
“After several months of speculation, the US Federal Reserve decided to cut interest rates. Initially, the market seemed cautious about what some referred to as a ‘hawkish cut,’ but inflows picked up later in the week,” Butterfil stated.
In the wake of the Fed’s rate cuts, there was a bit of price volatility in the crypto market, with Bitcoin climbing to a weekly peak of over $117,000 on Thursday, according to Coingecko data.
Ether also surged, crossing the $4,600 mark on Thursday after beginning the week closer to $4,500.
Despite the influx and rising prices, investor sentiment remained careful. The Crypto Fear & Greed Index, which gauges market sentiment, reflected this caution.
The index recorded a neutral score of 53 last week but dipped to “fear” with a score of 45 on Monday, according to data from Alternative.ME.
