Bitcoin (BTC) and cryptocurrency investment funds continue to attract investor interest. Over the past week, a total of $321 million was injected into these investment products, marking the second consecutive week of net growth.
This flow of capital increased total assets under management by 9% (AuM), which consolidates the confidence of institutional investors in cryptoassets.
A CoinShares report It notes that total investment product volumes reached $9.5 billion, reflecting a 9% increase compared to the previous week.
The main protagonist of this trend has been bitcoin (BTC), which received the most tickets with a total of 284 million dollars.
However, not only investment funds that follow the price of BTC benefited, but short-term investment products (i.e. those that rise in price when Bitcoin falls, and vice versa) also registered positive movements, accumulating $5 million in inflows.
In the case of US spot bitcoin ETFs reported net inflows of $92 million last Fridaybringing total inflows into cryptocurrency funds to nearly $400 million in the week, according to SosoValue data.
These financial products are preferred by institutional investors, who opt for instruments regulated by the United States Securities and Exchange Commission (SEC) instead of buying BTC or cryptocurrencies directly and managing them in self-custody wallets.
The US interest rate cut was the protagonist
James Butterfill, head of research at CoinShares, noted that this surge in bitcoin and cryptocurrency funds was driven by key macroeconomic decisions in the United States.
Last week, the US Federal Reserve (Fed) cut interest rates by 0.5%, which has been crucial to increasing liquidity and facilitating the entry of capital into the markets, as reported by CriptoNoticias.
Many investors believe that The drop in interest rates anticipates a rise in bitcoinwhich generates early purchases of the cryptoasset or related financial products.
In contrast, the outlook for Ethereum’s cryptocurrency, ether (ETH), has been less favorable. Butterfill explained that ether investment products registered outflows for the fifth consecutive week, accumulating $29 million in withdrawals.
This trend is largely due to continued capital outflows from the Grayscale Ethereum Trust (ETHE) ETF, which has seen withdrawals of $2.7 billion, according to Farside data Invests.
In addition, Ethereum ETFs launched in July have raised little capital, which has accentuated this negative trend.
