Crypto ETFs record $533 million of net inflows as possibility of rate cut boosts investor confidence


  • Digital asset products witnessed $533 million in inflows last week after Jerome Powell hinted at rate cut in September.
  • Bitcoin saw $543 million in inflows as investors began flocking in on Friday.
  • Ethereum experienced further outflows last week, with other altcoins seeing little or no inflows.

Crypto ETFs recorded the highest inflows in five weeks after Jerome Powell hinted at the possibility of the Federal Reserve’s (Fed) cutting interest rates in September during his speech at the Jackson Hole Symposium. Meanwhile, the altcoin investment market witnessed little or no inflows with Ethereum ETFs seeing outflows totaling $35.7 million last week.

Digital asset investment products see renewed investor interest following $543 million of inflows

Crypto ETFs recorded $533 million in net inflows last week, according to CoinShares' weekly report. This is the highest inflow among crypto ETFs in five weeks, as the crypto market witnessed another week of recovery from the market drawdown on August 5.

Crypto ETF Flows

Crypto ETF Flows

The increased inflows were largely influenced by Fed Chair Jerome Powell's speech at the Jackson Hole Symposium on Friday, in which he suggested that the time has come for the Feds to lower interest rates if economic data aligns.

The US remained dominant regionally, with inflows totaling $498 million, followed by Hong Kong with $15.9 million in inflows. Switzerland also recorded inflows last week, totaling $13.9 million after a previous week of outflows. Brazil was just a little behind with $8 million in inflows. However, German investors continued to shed their holdings, posting $8.9 million in outflows last week. 

Asset-wise, Bitcoin ETFs were majorly responsible for the net inflows, witnessing $543 million of positive last week. The surge in inflows suggests Bitcoin's high sensitivity to the possibility of interest rate cuts, as nearly 50% of the flows came following Powell's speech on Friday. This is also evident in Bitcoin's price, which experienced a 7% rally to $64K on Friday. 

Meanwhile, altcoins witnessed negative flows last week, with global Ethereum ETFs recording net outflows totaling $35.7 million. 

According to CoinShares, Ethereum ETFs have recorded $3.1 billion in inflows since the launch of the US spot ETH ETFs, but this has largely been offset by heavy negative flows from Grayscale Ethereum Trust (ETHE), which has seen $2.5 billion in outflows.

Crypto ETF FAQs

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high

Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines. 

More Cryptocurrencies News
TON set to launch synthetic Bitcoin to boost its DeFi solutions

TON set to launch synthetic Bitcoin to boost its DeFi solutions

TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.

More Ton News
Maker Price Forecast: MKR could stage 40% rally

Maker Price Forecast: MKR could stage 40% rally

MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.

More MakerDAO News
USDT market cap crosses $120 billion as stablecoins continue their uptrend

USDT market cap crosses $120 billion as stablecoins continue their uptrend

The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.

More USDT News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP