Global crypto investment products bounced back strongly last week, attracting $921 million in fresh inflows into exchange-traded products (ETPs), according to data from CoinShares. This comes after a week of $513 million in outflows, showing that investor confidence is returning as expectations grow for potential interest rate cuts.
Investor confidence returns amid rate-cut hopes
According to James Butterfill, Head of Research at CoinShares, the market’s rebound came despite broader uncertainty caused by the ongoing U.S. government shutdown, which has limited the release of key economic data.
“The resulting absence of macroeconomic guidance has left investors with little direction on U.S. monetary policy,” Butterfill explained. “However, the lower-than-expected CPI data released on Friday helped restore confidence that further rate cuts are likely this year.”
The data shows that investors appear to be positioning for a more favorable monetary environment. The weekly trading volume in crypto ETPs remained robust at $39 billion, significantly higher than this year’s average of $28 billion per week.
U.S. and Germany lead global inflows
The U.S. led the way last week, pulling in $843 million into crypto funds. Germany followed with $502 million, one of its biggest weekly inflows yet — a clear sign that investor interest in Europe is picking up as market sentiment improves.
In contrast, Switzerland recorded $359 million in outflows, but according to CoinShares, this was mostly the result of asset transfers between providers, not actual investor selling.
Bitcoin leads; Ethereum faces outflows
Bitcoin continued to lead the market, accounting for the bulk of inflows at $931 million. Since the U.S. Federal Reserve began cutting interest rates, total Bitcoin inflows have now reached $9.4 billion. Year-to-date, Bitcoin investment products have attracted $30.2 billion, still trailing last year’s $41.6 billion total.
Ethereum, meanwhile, saw money move out for the first time in five weeks, with outflows hitting $169 million. Still, demand for leveraged Ethereum products stayed strong, suggesting traders are betting on short-term price swings.
Solana and XRP had a quieter week, bringing in $29.4 million and $84.3 million in inflows, respectively. CoinShares noted that flows in both assets have cooled as the market awaits the launch of U.S. spot ETFs.
Market Outlook
Bitcoin and Ethereum prices both ended the week higher, rising 3.5% and 3.1%, respectively, with most gains coming during Sunday’s short liquidation surge. As expectations of rate cuts grow and trading volumes remain solid, confidence in the digital asset market is quietly making a comeback.
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