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Crypto Funds See $921m Inflows as Inflation Data Fuels Rally

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Cryptocurrency investment products regained momentum last week as investor confidence improved following lower US inflation data.

Crypto Exchange traded products (ETP) Last week saw $921 million in inflows, more than offsetting $513 million in inflows from the week before, Coinshares reported monday

The main driver behind the bullish trend in the Crypto Fund market is renewed confidence in further US rate cuts, boosted by lower CPI data released on Friday, according to Coinshares head of research, James Butterfill.

“The ongoing US government shutdown, and the resulting lack of key macroeconomic data, has left investors with little guidance on the direction of US monetary policy,” Butterfill wrote, adding that the CPI data helped restore hope of further rate cuts.

The top Bitcoin flows; Ether has gone negative

Bitcoin (BTC), which is the Main driver of inflows a week earlierlosses were almost completely offset with $931 million in outflows last week.

Ether (Eth) saw inflows for the first time in five weeks, totaling $169m, with consistent daily inflows throughout the week. “Despite this, 2x leveraged ETPs will remain popular,” said Butterfill of Coinshares.

Crypto ETP flows by property on Friday (in millions of US dollars). Source: Coinshares

Others Altcoins ETP, including Solana (Sol) and xrp (XRP), saw a slowdown in weekly inflows ahead of the US Exchange-Traded Fund (ETF) launch, which recorded $29.4 million and $84.3 million in inflows, respectively. In particular, Solana ETP inflows fell more than 81% from the previous week.

The $931 million Bitcoin outflow last week brought the total outflow since the The US Federal Reserve began cutting rates in September At $9.4 billion, Butterfill said.

Related: Bitcoin ETF Apathy forces a major level of support in Bitcoin

Despite billions in recent inflows, Bitcoin’s total funding stood at $30.2 billion, or around 38% below the $ 41.6 billion recorded last yearhe added.

Overall, total assets under management in crypto funds reached $229 billion, with $48.9 billion in flows so far this year.