Digital asset investment products saw a significant increase of $932 million for the second week in a row, mainly driven by expectations of interest rate cuts. The majority of this surge in funds came during the final three trading days, accounting for 89% of the total weekly inflow, following a report that showed lower-than-expected Consumer Price Index (CPI) figures.
Despite this rise, the weekly trading volume remained notably lower at $10.5 billion compared to $40 billion in March, reflecting a shift in Bitcoin prices linked to interest rate predictions.
Regional Trends and Institutional Interest
According to CoinShares data, the United States emerged as a key player, seeing an impressive inflow of $1.002 billion. In a surprising twist, Grayscale Investments experienced its first inflows since January, totaling $18 million, a significant change after facing $16.6 billion in outflows due to the launch of its exchange-traded fund (ETF). In Europe, Switzerland and Germany also recorded modest inflows of $27 million and $4.2 million, respectively. On the flip side, Hong Kong and Canada markets saw outflows, losing $83 million and $17 million, respectively.
Bitcoin remained the top performer with significant inflows of $942 million, while short positions against Bitcoin showed minimal activity, indicating a bullish investor outlook. Among alternative coins, Solana, Chainlink, and Cardano saw notable inflows of $4.9 million, $3.7 million, and $1.9 million, respectively. Conversely, Ethereum faced challenges during the week, experiencing outflows of $23 million amid concerns about the potential approval of a spot-based ETF by the Securities and Exchange Commission (SEC).
The broader blockchain sector continued to struggle, with equity funds related to blockchain technology seeing outflows for the 14th week out of 20 this year, totaling $512 million in outflows year-to-date. This trend highlights investors’ cautious approach in light of regulatory uncertainties and market volatility.