Bitcoin (BTC) Inflows Surge to $543M as Powell Hints at Rate Cuts
Lawrence Jengar Aug 26, 2024 09:23
Digital asset investment products saw $533M in inflows, driven by Bitcoin (BTC) and Ethereum (ETH) activity, following Powell's rate cut hints.
Digital asset investment products experienced significant inflows totaling $533 million last week, according to CoinShares. This marks the largest inflows in five weeks, spurred by remarks from Federal Reserve Chairman Jerome Powell at the Jackson Hole Symposium, where he hinted at potential interest rate cuts.
Bitcoin (BTC) Leads Inflows
Bitcoin (BTC) was the primary beneficiary, attracting $543 million in inflows. The majority of these inflows occurred on Friday, following Powell's dovish comments, highlighting Bitcoin's sensitivity to interest rate expectations. This surge underscores the cryptocurrency's role as a hedge against macroeconomic uncertainties.
Ethereum (ETH) and Other Digital Assets
Ethereum (ETH) faced outflows totaling $36 million last week. However, the new Ethereum ETFs, launched a month ago, have seen substantial inflows of $3.1 billion, partially offset by outflows from the Grayscale Ethereum Trust, which recorded $2.5 billion in outflows.
Blockchain equity investment products also saw inflows for the third consecutive week, amounting to $4.8 million. This trend indicates growing investor interest in blockchain technology companies.
Regional Insights
Regionally, the United States led the inflows with $498 million. Hong Kong and Switzerland also recorded notable inflows of $16 million and $14 million, respectively. Conversely, Germany experienced minor outflows totaling $9 million, making it one of the few countries with net outflows year-to-date.
Despite lower trading volumes compared to recent weeks, activity remained robust, with volumes reaching $9 billion for the week.
For more detailed insights, visit the CoinShares blog.
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