Crypto Fund Inflows Surge

Crypto funds at asset managers including BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares returned to net inflows of $436 million globally last week, according to CoinShares, following two weeks of net outflows.

“We believe the surge in inflows towards the end of the week was driven by a significant shift in market expectations for a potential 50 basis point interest rate cut on September 18,” said CoinShares Head of Research James Butterfill in a Monday report. This came after comments from former Federal Reserve Bank of New York President Bill Dudley.

Despite the inflows, trading volume remained flat at $8 billion, notably below the $14.2 billion average for 2024.

Weekly Crypto Asset Flows

Bitcoin Dominates While Ethereum Struggles

Bitcoin-based funds once again led the flows, generating $436 million in net weekly inflows after a 10-day streak of net outflows totaling $1.2 billion. Interestingly, short Bitcoin investment products reversed course, registering net outflows of $8.5 million after three weeks of inflows.

The U.S. market dominated with spot Bitcoin exchange-traded funds accounting for $403.9 million in net weekly inflows. Funds based in Switzerland and Germany saw net inflows of $27 million and $10.6 million, respectively, while Canada-based products experienced net outflows of $18 million.

Solana investment products also saw net inflows of $3.8 million for the fourth consecutive week.

In contrast, Ethereum-based funds continued to struggle, yielding further net outflows of $19 million last week, which followed $98 million in negative flows the week before. The ratio between Bitcoin and Ethereum dropped below 0.04 over the weekend, marking the first time since April 2021, according to TradingView.