Bitcoin sees $543 million in inflows after Powells dovish remarks
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 weeks 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 Powells dovish comments. Butterfill stated that this further indicated Bitcoins 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 Grayscales 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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Text source: CryptoSlate
