Digital Asset Investment Products collectively pulled in $1.9 billion, marking the second consecutive week of inflows. The surge followed years of interest rate cuts by the US Federal Reserve last week. Investors were initially hesitant, treating the move as a “Hawkish cut,” but sentiment improved as the week progressed.
By Thursday and Friday, inflows accelerated, adding $746 million as the market reassessed the impact of rate decisions on crypto.
Solana and XRP see inflows
According to Coinshares, management’s total assets rose to a new-to-date peak of $40.4 billion, on track to meet or slightly exceed last year’s record inflows, according to the latest edition of the Digital Asset Fund Flows Weekly Report.
Bitcoin attracted the biggest inflows last week after securing $977 million. Meanwhile, the short Bitcoin product recorded $3.5 million in outflows and continued to reduce total assets under management to a multi-year low of $83 million. Ethereum also gained momentum, receiving $772 million.
Cumulative inflows this year are now at a record $12.6 billion. This brings total assets under management to a staggering $40.3 billion. Solana brought in $127.3 million, XRP secured $69.4 million, SUI had smaller inflows of $2.1 million, ChainLink $1.9 million, and Cardano $1.1 million.
Meanwhile, multi-asset investment products saw outflows of $38 million.
The United States received the largest inflows at $1.8 billion, followed by Germany with $51.6 million and Switzerland with $47.3 million. Canada also received an inflow of $21 million during the same period. Next was Brazil with $9.3 million and Australia with $7.8 million.
Sweden and Hong Kong recorded modest outflows of $13.6 million and $3.1 million, indicating limited regional pullbacks, but market sentiment remained generally optimistic.
market meltdown
Major crypto assets slipped into a new recession on Monday as the market lost a lot of momentum last week. Bitcoin has retreated more than 3% in the past day, falling below $112,300. Ethereum caused another 6% decline, trading close to $4,202.
Other major tokens were also distorted as XRP fell nearly 5%, Solana slipped around 7% and Dogecoin plummeted nearly 10%. A pullback across the market instilled selling pressure that renewed optimism after a few days. This triggered a cascade of liquidations.