Crypto ETPs hit record $40.4 billion as $1.9B floods in after Fed rate cut

Crypto ETPs inflow surged last week, with funds attracting $1.9 billion as Bitcoin ETFs extended their winning streak according to CoinShares and SoSoValue data. The latest wave of capital lifted total global assets under management in crypto exchange traded products to $40.4 billion year to date marking a record high for the sector.

Cryptocurrency funds notched a second consecutive week of gains adding to the $3.3 billion in inflows recorded the week before. Bitcoin led the Crypto ETPs inflow trend with $977 million, while Ether followed closely with $772 million. Solana and XRP also saw significant demand pulling in $127 million and $69 million respectively.

Bitcoin ETFs drive four week Crypto ETPs inflow streak

Bitcoin funds remained the largest driver of Crypto ETPs inflow adding $2.4 billion the previous week and another $977 million last week. The latest activity brought the four week Crypto ETPs inflow total to $3.9 billion data from SoSoValue showed.

In contrast, short Bitcoin products continued to see steep outflows with $3.5 billion exiting and total AUM dropping to a multiyear low of $83 million. Meanwhile, Ether ETPs posted strong inflows that pushed year to date totals to a record $12.6 billion underscoring investor appetite for the asset.

Fed cut sparks renewed confidence in Crypto ETPs inflow

The robust Crypto ETPs inflow also coincided with the U.S. Federal Reserve’s first rate cut of the year lowering interest rates by 0.25 points. CoinShares’ head of research James Butterfill noted that while investors initially reacted cautiously to the so called “hawkish cut,” inflows strengthened later in the week.

Spot crypto prices reflected the momentum, with Bitcoin climbing above $117,000 and Ether briefly topping $4,600. Still, the Crypto Fear & Greed Index remained neutral at 53 for most of the week before slipping to “Fear” at 45 on Monday, showing lingering caution despite strong inflows.

Cautious optimism despite record Crypto ETPs inflow

While the record breaking Crypto ETPs inflow highlights surging institutional interest, sentiment remains mixed. Investors appear optimistic about macroeconomic shifts but continue to hedge against volatility underscoring the market’s balancing act between opportunity and caution.