Crypto Products See $1.2B Inflows as Ethereum Ends 5-Week Outflow Streak
According to CoinShares recent weekly report, inflows into cryptocurrency products saw a massive increase last week. These inflows coincided with a recovery in crypto prices, with Bitcoin (BTC) and most altcoins trading higher.
These inflows marked the third consecutive week that crypto investment products saw positive data. The report attributed the positive flow of data to the macroeconomic events in the US.
After the US Federal Reserve trimmed interest rates earlier this month, interest in risk assets spurred. The dovish monetary policy also saw the total crypto assets under management increase by 6.2% last week.
Bitcoin had the highest inflows, which reached around $1 billion last week alone. Last weeks data led to the month-to-date flows for Bitcoin products reaching $1.14 billion, while the year-to-date flows now stand at $22 billion.
This data comes amid significant growth in the spot Bitcoin exchange-traded fund (ETF) products US issuers offer. On September 27, inflows to Bitcoin ETFs reached $494 million per SoSoValue data, which was the highest level since July.
The approval of options for certain US-based investment products likely boosted sentiment, although trading volumes have not seen a commensurate rise, in fact, they declined slightly by 3.1% week-on-week, the report said.
Ethereum investment products flip positive
Ethereum (ETH) has been struggling with declining prices amid a lack of interest in Ethereum investment products. However, this sentiment shifted last week, with flows turning positive for the first time in five weeks.
Last week, Ethereum products reached positive flows of $86 million per CoinShares. However, despite this positive metric, the month-to-date flows remained negative at $60 million.
The positive flow data coincided with a recovery in Ethereum prices, with the largest altcoin gaining by 14% in the last two weeks. ETH traded at $2,457 after a 0.59% loss in 24 hours.
Other altcoins also reported positive flows. Ripples XRP and Cardano (ADA) saw inflows of $0.8 million and $0.1 million, respectively. XRP investment products have attracted $1.9M in inflows in the past month. However, ADAs month-to-date flows have been negative, with $0.3 million in outflows.
While nearly all altcoin products saw positive flow data last week, Solana products failed to record the same. Instead, SOL products saw $4.8 million in outflows, suggesting investors were shying away from investing in the Ethereum killer.
Read more: https://zycrypto.com/crypto-products-see-1-2b-inflows-as-ethereum-ends-5-week-outflow-streak/
Text source: ZyCrypto
