Digital asset fund flows | August 26th 2024

BTC inflows of US$543m as Powell Hints at Rate Cuts

• Last week, digital asset investment products saw inflows totalling US$533m, marking the largest inflows in five weeks. This surge followed remarks by Jerome Powell at the Jackson Hole Symposium.

• Bitcoin was the primary focus, seeing US$543m of inflows, indicating its sensitivity to interest rate expectations.

• A month in from the ETH ETF launches, the new Ethereum ETFs have seen US$3.1bn of inflows, partially offset by outflows from the Grayscale Trust.

Last week, digital asset investment products saw inflows totalling US$533m, marking the largest inflows in five weeks. This surge followed remarks by Jerome Powell at the Jackson Hole Symposium, where he suggested that the first interest rate cut could occur in September. Although trading volumes were lower than in recent weeks, they remained high, reaching US$9bn for the week.

Regionally, the US saw the lion’s share of inflows at US$498m, while Hong Kong and Switzerland also saw notable inflows totalling US$16m and US$14m respectively. Minor outflows were seen in Germany totalling US$9m leaving it as one of the only countries with net outflows year-to-date.

Bitcoin was the primary focus, seeing US$543m of inflows, interestingly, the majority of those inflows were on Friday, following the dovish comments from Jerome Powell, indicating Bitcoins sensitivity to interest rate expectations.

Ethereum saw outflows totalling US$36m last week, although new issuers continue to see inflows with the Grayscale Ethereum trust offsetting this with US$118m outflows. A month in from the ETH ETF launches, the new Ethereum ETFs have seen US$3.1bn of inflows, partially offset by outflows from the Grayscale Trust of US$2.5bn.

Blockchain equities saw inflows for the 3^rd consecutive week totalling US$4.8m.

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