Digital Asset Investment Products Inflow Rebound Ahead FOMC

Key Points:

• Digital asset investment products saw $436 million in inflows after weeks of $1.2 billion in outflows.
• Bitcoin led the inflows with $436 million, while Ethereum continued to see outflows of $19 million due to Layer 1 profitability concerns.

Digital asset investment products recorded significant inflows of $436 million after several successive weeks of outflows amounting to $1.2 billion.

Digital Asset Investment Products Inflow Rebound Amid Rate Cut Speculation

This was allegedly driven by speculation of an impending 50 bps interest rate cut on September 18, informed by comments from former New York Federal Reserve President Bill Dudley.

Meanwhile, the trading volumes of ETFs were flat. The weekly volumes were at $8 billion, short of the year-to-date average of $14.2 billion.

By region, the United States dominated the inflows into digital asset investment products, with a $416 million inflow. Europe was the next closest in positive activity, with Switzerland netting an intake of $27 million and Germany $10.6 million. Meanwhile, small outflows were seen in Canada, amounting to $18 million in net outflow.

Bitcoin Sees Strong Inflows, Ethereum Faces Continued Outflows

Along with cryptocurrencies, blockchain equities saw renewed interest, with inflows of $105 million. This was, in turn, after the launches of a number of new ETFs in the United States further pushed up momentum.