Investment products for digital assets experienced a significant increase of $932 million for the second consecutive week, driven primarily by the anticipation of interest rate cuts. This notable surge in capital inflow was mainly seen in the last three trading days, accounting for 89% of the total weekly inflow, following a report that revealed lower-than-expected Consumer Price Index (CPI) figures.
Despite this surge, the weekly trading volume remained significantly lower at $10.5 billion compared to $40 billion in March, reflecting a recalibration of Bitcoin prices closely linked to interest rate expectations.
Regional dynamics and institutional interest
According to CoinShares statistics, the United States emerged as a dominant player, with an impressive inflow of $1.002 billion. In a significant turn of events, Grayscale Investments experienced its first inflows since January, totaling $18 million, a remarkable shift after enduring $16.6 billion in outflows due to the launch of its exchange-traded fund (ETF). In Europe, Switzerland and Germany also recorded modest inflows of $27 million and $4.2 million, respectively. However, the Hong Kong and Canada markets faced outflows, losing $83 million and $17 million, respectively.
Bitcoin led the way with substantial inflows amounting to $942 million, while positions betting against Bitcoin saw minimal activity, indicating a bullish investor sentiment. Among altcoins, Solana, Chainlink, and Cardano were notable beneficiaries, with inflows of $4.9 million, $3.7 million, and $1.9 million, respectively. On the other hand, Ethereum had a challenging week, with outflows of $23 million amid ongoing concerns about the potential approval of a spot-based ETF by the Securities and Exchange Commission (SEC).
The broader blockchain sector continued to face challenges, with equity funds related to blockchain technology experiencing outflows for the 14th week out of 20 this year, totaling $512 million in outflows year-to-date. This trend highlights investors’ cautious approach amid regulatory uncertainties and market volatility.
