CoinShares, a digital assets manager, has reported that institutional investors have poured a substantial amount of capital into digital asset products in the past week. According to CoinShares’ latest Digital Asset Fund Flows report, institutional crypto investment products experienced a surge in inflows totaling $436 million. This influx of capital comes after several weeks of outflows amounting to over $1 billion.
The spike in inflows towards the end of the week was attributed to a significant shift in market expectations for a potential 50 basis point interest rate cut on September 18th. This change in sentiment followed comments from former NY FED President Bill Dudley. Despite this increase in capital inflows, trading volumes in ETFs remained flat at $8 billion for the week, significantly lower than the average of $14.2 billion seen throughout the year.
The United States led the way in terms of inflows regionally, with $416 million flowing into institutional crypto investment products. In contrast, Canada experienced outflows of $18 million. Switzerland and Germany also contributed to the inflows, with $27 million and $10.6 million respectively.
Bitcoin (BTC), the leading cryptocurrency by market cap, was the primary focus of institutional investors, attracting $436 million in inflows. However, there was a reversal in short-bitcoin flows, with outflows of $8.5 million following three consecutive weeks of inflows.
On the other hand, Ethereum (ETH), the leading smart contract platform, saw outflows of $19 million, bringing its month-to-date outflows to $117 million. Despite this, institutional investors continue to show interest in digital assets, with Bitcoin remaining a popular choice for investment.
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The article includes an image generated by Midjourney for visual representation. Overall, institutional investors are showing increased interest in digital assets, with Bitcoin attracting significant inflows despite some outflows in other cryptocurrencies like Ethereum.