Rate-cut optimism drives $921 million in weekly global crypto ETP inflows: CoinShares

Global crypto investment products managed by asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares witnessed net inflows of $921 million last week, according to CoinShares' data, bouncing back from the prior week's $513 million in net outflows.

"The ongoing U.S. government shutdown, and the resulting absence of key macroeconomic data, has left investors with little guidance on the direction of U.S. monetary policy," CoinShares Head of Research James Butterfill wrote in a Monday report . "However, the lower-than-expected CPI data released on Friday helped restore some confidence that further rate cuts are likely this year."

Weekly trading volumes in digital asset exchange-traded products also remained robust at $39 billion — well above this year's $28 billion weekly average, Butterfill noted. 

The inflows were dominated by the U.S. market, with crypto investment products in the country adding $843 million, while Germany-based funds saw one of their largest weekly hauls, attracting $502 million. In contrast, products in Switzerland saw net outflows of $329 million, though this was primarily driven by an asset transfer between providers rather than genuine selling pressure, Butterfill said.

Last week, BTC and ETH rebounded to rise 3.5% and 3.1%, respectively, according to The Block's price page , though the majority of those gains came during Sunday's short liquidation surge.

Bitcoin funds dominate as Ethereum products slip

Bitcoin-based investment products were the primary focus of the net inflows in terms of the underlying cryptocurrency, adding $931 million last week, bringing total inflows since the Federal Reserve began cutting interest rates to $9.4 billion, Butterfill noted. Year-to-date inflows for the funds now stand at $30.2 billion, but continue to lag 2024's $41.6 billion total.

The U.S. spot Bitcoin exchange-traded funds saw $446.3 million in net inflows alone, according to data compiled by The Block, led by $324.3 million into BlackRock's IBIT.

However, Ethereum products slipped to their first net outflows in five weeks, with $169 million exiting amid consistent daily outflows throughout the week. The U.S.-based spot Ethereum ETFs led the exodus, seeing $243.9 million in weekly outflows, offset by inflows in other regions.

Meanwhile, flows into existing XRP and Solana ETPs cooled to $84.3 million and $29.4 million, respectively, ahead of the anticipated U.S ETF launches.