The global digital asset investment market has experienced a significant rebound recently, marking a strong recovery for crypto-based funds. According to a report by CoinShares, global crypto investment products amassed a net inflow of $321 million last week. This comes after two consecutive weeks of outflows, indicating a shift in investor sentiment driven by macroeconomic factors, including the recent decision by the US Federal Reserve to cut interest rates. These developments have played a crucial role in shaping the direction of the crypto market.
Bitcoin and Solana Lead the Inflow Surge
As detailed in the CoinShares report, Bitcoin-based investment products continue to dominate the market, contributing the majority of last week’s inflows. Bitcoin products alone saw net inflows amounting to $284 million. This marks a notable shift in momentum for the leading cryptocurrency, which has consistently outperformed other digital assets in attracting institutional investment.
Interestingly, short-Bitcoin products—designed to profit from a decline in Bitcoin’s price—also saw modest inflows of $5.1 million, indicating that some investors remain cautious and are hedging against potential volatility.
Solana-based funds have also stood out in recent weeks. According to CoinShares, Solana saw net inflows of $3.2 million last week, reflecting growing interest in the asset. However, while Bitcoin and Solana enjoyed positive momentum, Ethereum-based investment products experienced another week of net outflows.
The CoinShares report highlights that last week, Ethereum products recorded $29 million in outflows, extending their losing streak to a fifth consecutive week. This brings the total outflows for Ethereum-based funds to $187.7 million over this period.
What About Regional Flows?
On a regional scale, the United States remains the dominant player in the global crypto investment market, with American-based funds bringing in $277 million in net inflows. Switzerland followed with the second-largest weekly inflows of $63 million. In contrast, countries like Germany, Sweden, and Canada faced net outflows, painting a more mixed picture of global crypto investment trends.
According to CoinShares Head of Research James Butterfill, the rebound in both Bitcoin and Solana was largely driven by a shift in US monetary policy, particularly the Federal Open Market Committee’s (FOMC) more dovish stance and the 50-basis-point interest rate cut. This monetary easing has provided a favorable environment for risk assets, including cryptocurrencies, encouraging increased global inflows into digital asset products.
Bitcoin’s Market Performance
Bitcoin’s positive inflows have been reflected in its market performance. BTC is now trading back above the psychological $60,000 level. At the time of writing, Bitcoin is trading at $62,775, slightly down by 1.1% over the past day. This increase in price performance has also boosted Bitcoin’s market capitalization valuation, rising from below $1.15 trillion last week to currently above $1.25 trillion.
As the global digital asset investment market continues to rebound, the positive trends in Bitcoin and Solana, coupled with shifts in macroeconomic policies, are likely to drive further interest and investment in the crypto space. Investors will be closely watching how these dynamics unfold in the coming weeks.
