According to CoinShares’ latest weekly fund flow report, crypto investment products saw their largest inflows in five weeks, with $533 million pouring into the sector.

James Butterfill, head of research at CoinShares, explained that these inflows followed remarks by US Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium last week.

At the event, Powell hinted that the market might expect interest rate cuts in September, which many market observers suggested were bullish for Bitcoin and other crypto.

This statement also appeared to have boosted trading volumes, with last week’s volume reaching $9 billion, significantly higher than in previous weeks.

Bitcoin, US lead

Bitcoin dominated the inflows, with $543 million, most of which occurred on Friday after Powell’s dovish comments. Butterfill stated that this further indicated Bitcoin’s sensitivity to interest rate expectations.

Interestingly, the bullish sentiment also attracted short trades, with $1.7 million flowing into Short BTC products.

Conversely, Ethereum faced outflows totaling $36 million last week. This may be due to continued investors’ exit from Grayscale’s Ethereum Trust. Butterfill wrote:

“Although new issuers continue to see inflows with the Grayscale Ethereum trust offsetting this with $118 million outflows.”

Despite this, the newly launched Ethereum ETFs in the US have accumulated $3.1 billion in inflows, which partially offsets the $2.5 billion outflow from the Grayscale Trust.

Meanwhile, blockchain equities recorded inflows for the third consecutive week, totaling $4.8 million. Other digital assets like Solana, XRP, and Litecoin saw combined inflows of around $1 million.

Across regions, the United States unsurprisingly accounted for the majority of the total inflows, with $498 million. Hong Kong and Switzerland also saw significant inflows, reaching $16 million and $14 million, respectively.

In contrast, Germany experienced minor outflows totaling $9 million, making it one of the few countries with a year-to-date net outflow.

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Crypto investment products experienced a lukewarm performance last week, with modest inflows of $30 million, according to CoinShares weekly report.

The weekly trading volume for these products also plummeted nearly 50% from the previous week, dropping to $7.6 billion.

James Butterfill, CoinShares‘ head of research, explained that these numbers were the market’s reaction to recent macroeconomic data that implied the Fed was less likely to cut interest rates by 50 basis points in September.

Solana sees record outflows

Bitcoin regained its dominance, attracting $42 million in inflows. However, its month-to-date flow remains negative, with a deficit of $320 million.

Similarly, Ethereum continued its multi-week streak of inflows, drawing in a modest $4.2 million, bringing its total monthly flows to nearly $166 million.

Additionally, Multi-asset products also saw positive momentum, with $21 million in inflows. Other altcoins, including XRP, reported gains as well.

Solana, however, faced significant outflows, with investors pulling a record $39 million from the asset. This was largely due to declining network fundamentals and a sharp drop in memecoin trading. Solana’s price reflected this bearish trend, falling 6% over the past week to $141.

Meanwhile, Short Bitcoin products recorded nearly $1 million in outflows, marking their second consecutive week of decline. This indicates that investors remain optimistic about Bitcoin’s short-term price potential.

BlackRock usurps Grayscale

Butterfill also explained that the modest inflow figures concealed the fact that established ETP providers like Grayscale were losing market share to issuers of newer investment products like BlackRock.

A closer look at specific providers reveals a more nuanced picture. Grayscale, a well-established provider of Bitcoin and Ethereum ETFs, saw continued outflows last week, with over $300 million exiting its products. This brought its month-to-date flows to a negative of more than $1 billion and dragged the total value of assets under its management to $20.5 billion.

In contrast, new entrants like BlackRock iShares and Fidelity’s FBTC reported strong inflows. Notably, BlackRock’s ETF saw inflows of $147 million last week, and its AUM has now risen to $21.677 billion, the highest in the sector.

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Crypto investment products experienced significant inflows of $176 million as investors capitalized on recent price dips, according to CoinShares‘ latest weekly report.

James Butterfill, the head of research at CoinShares, noted that the total assets under management (AUM) for crypto ETPs dipped to $75 billion amid the correction but have rebounded to $85 billion as of the latest report.

The trading volume for exchange-traded products (ETPs) surged to $19 billion during the period, exceeding this year’s weekly average of $14 billion.

Ethereum dominates

Ethereum saw the most substantial benefit from the market correction, with $155 million in inflows last week. This brings its year-to-date inflows to $862 million, the highest since 2021, mainly due to the recent launch of US spot-based ETFs.

Market experts have praised Ethereum ETFs’ performance since their launch in July. For context, Nate Geraci, president of ETF Store, pointed out that BlackRock’s iShares Ethereum ETF is now one of the top six ETF launches in 2024.

Geraci remarked:

“The iShares Ethereum ETF has attracted over $900 million in less than three weeks and is likely to hit $1 billion this week.”

Meanwhile, Bitcoin had a mixed performance last week. The flagship digital asset started the week with outflows but saw a trend reversal towards the end, as investors piled in $13 million to BTC-related investment products.

In contrast, short Bitcoin ETPs experienced their most significant outflows since May 2023, amounting to $16 million, or 23% of its AUM. This reduction in AUM for short positions reflects a significant investor withdrawal.

Other digital assets, including Solana, XRP, Cardano, and Litecoin, also saw modest inflows of about $6 million last week.

Interestingly, inflows were seen in all regions, indicating a broad positive sentiment toward the asset class following the recent price correction.

The US led with $89 million, followed by Switzerland with $20 million, Brazil with $19 million, and Canada with $12.6 million. However, the US remains the only country to experience net outflows month-to-date, totaling $306 million.

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CoinShares revealed that digital asset investment products experienced net inflows of $245 million last week.

According to the company’s weekly report, the trading volume for exchange-traded products (ETPs) rose to its highest level since May, at $14.8 billion, thanks to the launch of spot Ethereum ETFs in the US.

Total assets under management (AUM) for crypto ETPs increased to $99.1 billion, and their year-to-date inflows reached a record $20.5 billion.

Bitcoin attracts renewed confidence

Bitcoin enjoyed inflows of $519 million last week, bringing its total flows for the month to $3.6 billion and for the year to $19 billion.

James Butterfill, the head of research at CoinShares, attributed the inflows to renewed confidence in the asset, which has been the subject of recent discussions about being a reserve asset for the US government.

During the Bitcoin conference in Nashville, US politicians, including Republican Presidential Candidate Donald Trump and pro-Bitcoin Senator Cynthia Lummis, proposed making Bitcoin a strategic Treasury asset.

Notably, Senator Lummis introduced a bill that would see the US reserve accumulate 1 million BTC over five years. On the other hand, Trump vowed to make the US “a Bitcoin superpower” and ensure the government never sells the 210,000 BTC it already holds.

Ethereum ETFs

Meanwhile, the debut of Ethereum ETFs resulted in the largest inflows for the digital asset since December 2020. According to the CoinShares report, the products saw inflows totaling $2.2 billion, which resulted in a 542% increase in trading volumes.

Butterfill said:

“This figure is somewhat controversial as Grayscale seeded its new Mini Trust ETF (the week prior) with capital from its incumbent closed-end trust ($1 billion), which may help explain the steady stream of outflows in recent years.”

He also noted that the flows were impacted by Grayscale’s existing ETHE fund, which saw $1.5 billion in outflows, leading to a net outflow of $285 million for Ethereum ETPs.

Butterfill added that these outflows were similar to those seen in the firm’s Bitcoin trust in January 2024 after the Securities and Exchange Commission (SEC) approved the ETFs for trading.

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Digital asset investment products experienced consecutive inflows this month, with $1.44 billion recorded last week, per CoinShares‘ latest weekly fund flow report.

This recent inflow raised the year-to-date total to a record $17.8 billion, surpassing the $10.6 billion inflows of 2021.

However, trading volumes stayed low at around $8.9 billion, compared to the seven-day average of $21 billion.

Bitcoin sees the fifth-largest inflow.

A breakdown of the flows showed that Bitcoin saw its fifth-largest weekly inflows on record last week, totaling $1.5 billion. Conversely, short-Bitcoin experienced its largest weekly outflow since April 2024, amounting to $8.6 million.

This movement suggests a shift in market sentiment for the crypto industry. The significant Bitcoin inflows indicate investors’ growing confidence in the asset’s potential for substantial growth, with many investors taking advantage of the recent price decline to enter the market.

James Butterfill, head of research at CoinShares, said:

“We believe price weakness due to the German Government bitcoin sales and a turnaround in sentiment due to lower than expect CPI in the US prompted investor to add to positions.”

Meanwhile, Ethereum-related crypto products attracted $72 million in inflows in anticipation of its spot exchange-traded funds (ETF) launch. This marks its largest inflow since March, bringing its year-to-date flows to $57 million.

Nate Geraci, President of ETF Store, predicted the SEC would approve ETH ETF products for trading this week because the financial regulator “has no good reason for any further delay at this point.”

Furthermore, large-cap alternative digital currencies like Solana, Chainlink, Avalanche, and XRP saw more than $8 million in cumulative inflows.

Regionally, the United States led with $1.3 billion in inflows last week, reflecting a broad positive sentiment. Switzerland set a yearly record with $58 million in inflows, while Hong Kong and Canada saw $55 million and $24 million, respectively.

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Crypto-related investment products recorded their first inflow in over a month, totaling $130 million during the past week, according to CoinShares’ latest weekly report.

The inflows mark a notable shift in investor sentiment after weeks of negative flows across the crypto market. However, the inflow did not improve investors’ participation in the asset class as “ETP volumes continue to subside.”

James Butterfill, the head of CoinShares research, pointed out that the trading volume for last week stood at $8 billion, which is significantly lower compared to the $17 billion average seen in April. He added:

“These volumes highlight ETP investors are participating less in the crypto ecosystem at present, representing 22% of total volumes on global trusted exchanges relative to 31% last month.”

Spot Bitcoin ETFs still driving flows

The CoinShares report showed that spot Bitcoin ETFs in the US and Hong Kong still drive inflows into crypto products.

According to the report, the Newborn Nine Bitcoin ETFs in the US propelled inflows in the US to the forefront, with a positive flow totaling $135 million.

Notably, outflows from Grayscale’s GBTC have been on a downward trend in recent days, totaling $171 million during the previous week — the lowest weekly outflows since January.

On the other hand, the newly launched Bitcoin ETFs in Hong Kong saw a more modest inflow of $19 million, suggesting that most of the inflows during the first week after the Bitcoin ETF launch were seed capital.

Meanwhile, crypto-related ETPs in Canada and Germany continued to see outflows totaling $20 million and $15 million, respectively — bringing year-to-date outflows from these countries to a combined $660 million.

Ethereum ETF speculations lead to outflows

CoinShares said the uncertainty surrounding spot Ethereum ETF products has dampened investors’ confidence in the second-largest digital asset by market capitalization.

According to the firm:

“Low interaction by the US regulators with ETF issuer applications for a spot Ethereum ETF have increased speculation that the ETF approval is not imminent, this has been reflected in outflows which totalled $14 million last week.”

Similarly, short-Bitcoin recorded $5.1 million in outflows, bringing its 8-week consecutive outflow to $18 million.

Conversely, other altcoins, such as Polkadot, XRP, and Solana, saw a combined inflow of approximately $8 million.

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CoinShares’ latest weekly report revealed that crypto-related investment products saw their fourth consecutive week of negative flows, dominated by the “measurable outflows from the newly issued ETFs in the US.”

According to the report, the market saw an outflow totaling $251 million, with the Newborn Nine spot Bitcoin ETFs accounting for over 60%, or $156 million, of these flows.

James Butterfill, CoinShares head of research, said:

“We estimate the average purchase price of these ETFs since launch to be $62,200 per bitcoin, as the price fell 10% below that level, it may have triggered automatic sell orders.”

A breakdown of the flows showed that Fidelity’s FBTC saw the highest outflow amount, with $131 million exiting the fund, followed by Ark 21 Shares’ ARKB, which saw outflows amounting to $84 million.

Meanwhile, BlackRock’s IBIT saw a modest negative flow of $24 million, while Grayscale’s Bitcoin ETF continued its outflow trend, with $277 million withdrawn during the period.

The performance of these ETFs pushed outflows from the United States to $504 million. Notably, Canada, Switzerland, and Germany also saw outflows totaling $9.6 million, $9.8 million, and $7.3 million, respectively.

However, despite the performance of US-based spot Bitcoin ETFs, the newly launched spot-based Bitcoin and Ethereum ETFs in Hong Kong saw $307 million in inflows during the first week of their trading.

Ethereum and Polkadot draw inflows

Across assets, Bitcoin saw outflows totaling $284 million, propelling its month-to-date outflow to $291 million.

CryptoSlate’s previous reports found that crypto investors increasingly sought exposure to altcoins while reducing their exposure to flagship digital currencies like Bitcoin.

This trend continued this week as altcoins like Avalanche, Cardano, and Polkadot saw modest inflows of approximately $0.5 million, $0.4 million, and $0.3 million, respectively.

Notably, Ethereum broke its 7-week spell of negative flows, seeing $30 million of inflows last week. This has reduced ETH’s year-to-date outflow to a negative of $20 million.

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