Crypto Investment Products See $921M Inflows as Rate-Cut Hopes Grow

Global crypto investment products rebounded sharply last week with $921 million flowing into exchange-traded products, according to CoinShares data. This marks a dramatic reversal from the previous week's $513 million outflows, signaling renewed investor confidence amid expectations of impending interest rate cuts.

The resurgence occurred despite macroeconomic uncertainty caused by the U.S. government shutdown, which has disrupted key data releases. "The absence of clear economic indicators left markets without direction," noted James Butterfill, CoinShares' Head of Research. "Friday's softer CPI print restored conviction in the Fed's easing path."

Trading volumes remained elevated at $39 billion - well above the 2024 weekly average of $28 billion. The U.S. dominated inflows with $843 million, while Germany recorded its second-largest weekly intake at $502 million, underscoring Europe's growing appetite for crypto exposure.