Crypto investment products see $436M inflow while Ethereum continues to suffer
2024.09.16 14:09
According to the latest report by CoinShares, flows into cryptocurrency investment products rebounded last week, with $436 million in net inflows led by Bitcoin.
Following a two-week streak of outflows, crypto funds at asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares saw positive flows for the week ending Sept. 13 in what CoinShares believes can be explained by the market’s expectation of an interest rate cut by the US Federal Reserve.
In the latest “Digital Asset Fund Flows Weekly Report,” CoinShares head of research, James Butterfill, wrote:
“We believe the surge in inflows toward the end of the week was driven by a significant shift in market expectations for a potential 50 basis point interest rate cut on September 18th.”
Source: CoinShares
However, Butterfill added that trading volumes in crypto investment products remained flat for the week at $8 billion, much lower than the $14.2 billion average for 2024.
Bitcoin investment products dominate as Ethereum struggles
Bitcoin (BTC) investment products led the reversal, seeing $436 million in inflows, having seen a 10-day run of outflows totaling $1.8 billion, CoinShares explained.
Short Bitcoin investment product flows also reversed, registering net outflows of $8.5 million following three consecutive weeks of inflows.
Crypto investment products flows by asset. Source: CoinShares
Solana (SOL) investment products also witnessed net inflows of $3.8 million last week — the fourth week in a row. Litecoin (LTC) and Cardano (ADA) also saw inflows totaling $300,000 and $600,000, respectively.
Related: Bitcoin ETFs may face hacker threats, Ellison seeks no prison time, and more: Hodler’s Digest, Sept. 8 – 14
However, Ether (ETH) “continued to suffer,” experiencing $19 million in outflows during the Sept. 9 to Sept. 13 week, adding to $98 million in negative flows the previous week. CoinShares believes this is due to concerns over the profitability of the layer-1 blockchain following the Dencun upgrade.
Some traders say the significant flows into spot Bitcoin ETFs since their market debut on Jan. 11 compared to Ether ETFs experiencing net outflows have swung investor preference toward Bitcoin.
This has seen the ETH/BTC ratio drop below $0.04, the lowest level since April 2021.
ETH/BTC weekly chart. Source: TradingView
Since going live on July 23, Ether ETFs have recorded net outflows of $581 million. In comparison, spot Bitcoin ETFs took on over $12 billion in their first two months and have recorded over $17 billion in net inflows in just over eight months of trading.
Spot Ethereum ETF cumulative flow. Source: Farside Investors
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
