Crypto Investment Products See $2.5 Billion Inflows

Last week, global crypto investment products managed by firms like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares saw net inflows of $2.48 billion, recovering from the previous week's outflows, as reported by CoinShares. August's cumulative net inflows reached $4.37 billion, bringing the year-to-date total to $35.5 billion. However, assets under management dropped by 10% to $219 billion following negative price trends for the asset class. CoinShares' Head of Research, James Butterfill, noted that while inflows remained strong through the week, they turned negative on Friday after the disappointing release of the Core PCE data, which did not align with expectations of a Federal Reserve rate cut in September, leaving digital asset investors unsettled. In terms of regional performance, the U.S. market led last week's inflows with $2.29 billion, while Switzerland, Germany, and Canada saw inflows of $109.4 million, $69.9 million, and $41.1 million respectively. Butterfill indicated that the widespread inflows imply that Friday's outflows were likely the result of profit-taking rather than a signal of declining trends for the asset class. Ethereum continued to dominate investment products, attracting $1.4 billion in net inflows compared to Bitcoin's $748 million. U.S. spot Ethereum ETFs contributed $1.08 billion to this total, while Bitcoin ETFs brought in $440.8 million. Throughout August, Ethereum funds amassed $3.95 billion in net inflows, in stark contrast to Bitcoin funds, which experienced outflows of $301 million. Additionally, product investments in Solana and XRP netted inflows of $177 million and $134 million respectively, driven by optimism surrounding possible spot U.S. ETF launches.