Crypto ETPs See $1.9B Inflows As AUM Climbs Past $40B

Cryptocurrency funds recorded a second consecutive week of inflows last week, extending the $3.3 billion in gains recorded the week before.

Crypto exchange-traded products (ETPs) logged $1.9 billion in inflows last week, data from CoinShares showed Monday.

Bitcoin (BTC) and Ether (ETH) led the way with inflows of $977 million and $772 million respectively, while Solana (SOL) and XRP (XRP) also saw strong demand with $127 million and $69 million of inflows.

With the new gains, the total assets under management (AUM) in global crypto ETPs surged to a new high of $40.4 billion year-to-date, CoinShares’ head of research, James Butterfill, said.

Bitcoin funds extend inflow streak to four weeks

Bitcoin funds maintained momentum last week, attracting the largest share of inflows after topping the gains with $2.4 billion in inflows the previous week.

The latest inflows marked the fourth straight week of gains for Bitcoin exchange-traded funds (ETFs), bringing the four-week total to $3.9 billion, according to SoSoValue.

In contrast, short-Bitcoin ETPs continued to struggle, with $3.5 billion in outflows and total AUM dropping to a multiyear low of $83 million.

Crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares

Ether ETPs also saw strong investor demand last week, with fresh inflows pushing year-to-date totals to a record $12.6 billion, according to CoinShares data.

Positive response to the Fed’s rate cut

The fresh inflows in crypto funds came amid the US Federal Reserve slashing the key US interest rate by 0.25 points last Wednesday, marking its first cut of the year.

According to CoinShares’ Butterfill, the inflows marked a positive response to the interest cut despite initial caution from investors.

“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,” Butterfill said.

Stocks, CoinShares, Ethereum ETF, Bitcoin ETF, ETF — *Daily flows in spot Bitcoin ETFs versus spot Ether ETFs last week. Source: SoSoValue*

Following the Fed’s rate cut, spot crypto prices saw slight volatility, with Bitcoin price edging up to multi-week highs above $117,000 on Thursday, according to CoinGecko data.

Ether also briefly surged above $4,600 on Thursday after starting the week at about $4,500.

Despite strong inflows and rising prices, the investor sentiment remained cautious last week, according to the Crypto Fear & Greed Index, which measures the overall sentiment of the cryptocurrency market.

According to data from Alternative.me, the Crypto Fear & Greed Index was neutral last week with a score of 53. The index dropped to “Fear” on Monday, with a score of 45.