Digital asset investment products logged their second straight week of inflows as they collectively pulled in $1.9 billion. The surge followed the US Federal Reserve’s long-anticipated interest rate cut last week. Investors were initially hesitant and treated the move as a “hawkish cut,” but sentiment improved as the week progressed.
By Thursday and Friday, inflows accelerated, adding $746 million as markets reassessed the rate decision’s impact on crypto.
Solana and XRP See Inflows
According to the latest edition of ‘Digital Asset Fund Flows Weekly Report,’ by CoinShares, total assets under management climbed to a new year-to-date peak of $40.4 billion and now appear on track to meet or slightly surpass last year’s record inflows of $48.6 billion.
Bitcoin attracted the biggest inflows last week, after securing $977 million. Short-Bitcoin products, on the other hand, continued to falter, recording $3.5 million in outflows and lowering total assets under management to a multi-year low of $83 million. Ethereum also gained momentum, receiving $772 million.
Cumulative inflows for the year now stand at a record $12.6 billion. This has pushed total crypto assets under management to a staggering $40.3 billion. Solana brought in $127.3 million, XRP secured $69.4 million, and smaller inflows were seen in Sui with $2.1 million, Chainlink with $1.9 million, and Cardano with $1.1 million.
Meanwhile, multi-asset investment products saw outflows of $38 million.
The United States captured the largest inflows at $1.8 billion, followed by Germany with $51.6 million, and Switzerland with $47.3 million. Canada also raked in $21 million in inflows during the same period. Next up were Brazil with $9.3 million and Australia with $7.8 million.
Market sentiment remained generally optimistic, although Sweden and Hong Kong posted modest outflows of $13.6 million and $3.1 million, indicating limited regional pullbacks.
Market Meltdown
Leading crypto assets slid into a fresh downturn on Monday as the market lost the bullish momentum it displayed last week. Bitcoin retreated more than 3% in the past day, briefly dipping below $112,300. Ethereum suffered an even sharper 6% decline and is trading near $4,202.
Other major tokens also faltered as XRP dropped nearly 5%, Solana slid about 7%, and Dogecoin plunged close to 10%. The market-wide pullback instilled renewed selling pressure after days of optimism, which triggered a cascade of liquidations.
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