Digital asset investment products recorded a robust $921 million in inflows last week, signaling a renewed surge of investor confidence driven by growing expectations for U.S. Federal Reserve rate cuts following lower-than-anticipated CPI data. This influx marks a notable reversal from the previous week’s outflows, underscoring shifting sentiment as monetary policy outlooks become more optimistic.
Regional Investment Trends
U.S. investors led the momentum, contributing $843 million to crypto funds, while Germany registered $502 million in inflows—one of its strongest weekly tallies to date. Conversely, Switzerland saw $359 million in outflows, attributed mainly to asset transfers rather than outright selling, reflecting nuanced institutional activity in European markets.
Asset Class Performance Breakdown
Bitcoin dominated the sector, accounting for $931 million in inflows, pushing cumulative year-to-date inflows to $9.4 billion since the Fed’s initial rate cut signals. Ethereum experienced its first outflows in five weeks, with $169 million moving out, indicating continued rotation among institutional investors; leveraged Ethereum products remain popular for short-term trading. Solana and XRP posted inflows of $29.4 million and $84.3 million respectively, but activity has cooled pending further clarity on spot ETF launches in the U.S..
Market Outlook and Institutional Behavior
Weekly trading volumes for global crypto exchange-traded products (ETPs) reached $39 billion, significantly exceeding the year-to-date average of $28 billion, which points to sustained and expanding institutional engagement in digital assets even amid broader market volatility. The recent inflows suggest market participants are positioning for a more favorable macroeconomic and regulatory environment, leveraging U.S. monetary policy signals as key catalysts for risk allocation in the crypto sector.
Overall, the digital asset market is experiencing a strong rebound as optimism about rate cuts fuels a new wave of institutional accumulation, especially in Bitcoin and regulated product segments, while investors remain cautiously positioned ahead of significant ETF launch events.
