Global Crypto Fund Inflows Rebound

Global crypto funds at asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares continued their rebound into a second week, adding net inflows worth $321 million last week, according to CoinShares. This follows two prior consecutive weeks of net outflows.

“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,” CoinShares Head of Research James Butterfill wrote in a Monday report.

Total assets under management at the funds grew 9% as a result, with trading volume also up 9% on the week before at $9.5 billion, Butterfill added.

Bitcoin Products Dominate, Ether Funds Remain an Outlier

Bitcoin (BTC) -1.78% based investment products dominated the flows, generating $284 million in net inflows globally last week. However, the recent positive price action for Bitcoin also attracted net inflows of $5.1 million into short-bitcoin funds, Butterfill noted.

Solana-based funds continued their positive streak, adding $3.2 million worth of net inflows last week amid a series of announcements at the Solana Breakpoint conference in Singapore.

Meanwhile, ether-based investment products remain an outlier, registering a further $29 million in net outflows last week, extending their negative run to a fifth consecutive week, now totaling $187.7 million.

This trend is primarily driven by persistent outflows from Grayscale’s converted higher-fee incumbent fund, ETHE, which has seen $2.8 billion in total net outflows since trading began in July, compared to $2.2 billion worth of net inflows from the newly launched U.S. spot Ethereum (ETH) -2.01% ETFs, Butterfill added.

Regional Fund Performance

U.S.-based funds continued their dominance, witnessing $277 million in net inflows overall. Switzerland’s registered investment products saw their second-largest weekly net inflows of the year, adding $63 million. However, funds in Germany, Sweden, and Canada experienced net weekly outflows of $9.5 million, $7.8 million, and $2.3 million, respectively.