Crypto asset investment products experienced a significant return with an inflow of $436 million after the outflow of $1.2 billion the previous week. This increase towards the end of the week is thought to be due to a major change in market expectations. In particular, investors turned to crypto assets due to the increasing expectations for a possible 50 basis point interest rate cut on September 18. However, Ethereum experienced an outflow of $19 million due to ongoing difficulties. Here is the CoinShares data…
There was an inflow to cryptocurrencies this week
This sudden change in crypto asset investment products occurred as market players turned to a large investment wave in a short time. In particular, after the outflow of $1.2 billion observed throughout the previous week, an inflow of $436 million this week drew attention. The increasing expectations of investors for an interest rate cut stands out as one of the main reasons for this flow. The statements of former NY FED President Bill Dudley increased investors’ hopes for an interest rate cut, which caused a movement in the crypto asset market.
The trading volume in ETFs remained stable at $8 billion throughout the week. This figure is well below the average trading volume of $14.2 billion seen throughout the rest of the year. This shows that investors are generally more cautious and that uncertainties still persist in the market. When examined regionally, the US stood out with an inflow of $416 million. Inflows from Switzerland and Germany were recorded as $27 million and $10.6 million, respectively. A small outflow of $18 million was observed in Canada. This data shows that interest in crypto asset investment products on a global basis, especially in the US, is increasing.
Huge inflow in Bitcoin: Ethereum investors are exiting
Bitcoin saw a large inflow of $436 million after a 10-day outflow period throughout the week. This shows that Bitcoin is still considered a strong source of confidence by investors. In addition to Bitcoin, short Bitcoin positions also experienced changes; an outflow of $8.5 million occurred after 3 weeks of inflows. This situation indicates that investors’ interest in short Bitcoin positions has decreased. Ethereum experienced an outflow of $ 19 million this week, indicating that Ethereum’s negative impact on the market continues. It is thought that these difficulties faced by Ethereum are due to concerns about Layer 1 (L1) profitability. It is stated that this situation has reduced investors’ confidence in Ethereum and caused them to turn to alternative assets.
On the other hand, Solana experienced an inflow of $ 3.8 million in its 4th week. Solana’s continued successful performance is considered an indicator of increasing interest and confidence among investors. Blockchain-themed stock investment products saw an inflow of $ 105 million, along with the launch and launch of several new ETFs in the US. This development seems to have increased interest in blockchain technology and investors’ desire to evaluate the potential in this area.
In general, these fluctuations in the crypto asset market show how investors react to market expectations and macroeconomic factors. In particular, Bitcoin’s strong inflows and Ethereum’s challenges reveal how dynamic and volatile crypto asset investment strategies can be. Investors will need to continue to follow the markets closely and analyze developments carefully.
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