Cryptocurrency investment products saw a significant boost last week, with digital assets attracting the highest inflows in five weeks. Investors poured $533 million into crypto-related exchange-traded products (ETPs) between August 18 and August 24, driven by optimism surrounding potential interest rate cuts in the U.S.
Bitcoin emerged as the biggest winner, with $543 million in inflows, largely thanks to the BlackRock iShares Bitcoin Trust, which alone attracted $318 million. This surge in Bitcoin investments coincided with comments from U.S. Federal Reserve Chair Jerome Powell, hinting at possible interest rate cuts as early as September 2024.
In contrast, Ethereum-related investment products saw outflows of $36 million, despite the launch of new Ethereum ETFs that attracted $3.1 billion in inflows since late July. $2.5 billion in outflows from the Grayscale Ethereum Trust partially offset these gains, highlighting the mixed investor sentiment towards Ethereum.
Bitcoinâ€TMs price reacted positively to the increased inflows, rising by 8% from $59,500 to $64,300 during the week. However, despite this recent surge, Bitcoin remains down by 6% over the past month, following its peak at $69,900 in late July.
