Crypto-based investment funds saw the most value flow into them weekly since the last most profitable week in mid-July.
Crypto investment funds worldwide have recorded the highest amount of inflows since the week that ended on July 19. The inflows have continually risen over the past few weeks. Asset managers like BlackRock, Grayscale, Fidelity, ProShares, and others have capitalized on this space, with the huge volumes being handled since the launch of spot BTC exchange traded funds (ETFs) in the US.
CoinShares, according to a recent report, believes it “is a reaction to continued expectations of dovish monetary policy in the US and associated positive price momentum, with total assets under management (AuM) rising by 6.2% last week.” The report indicated that the US Securities and Exchange Commission (SEC) approving “certain US-based investment products likely boosted sentiment.” That includes its approval of BlackRock-managed IBIT fund’s physically settled options. However, trading volumes dropped week-on-week by 3.1%.
In the US, crypto investment products accumulated $1.17 billion, followed by Switzerland’s $84 million. On the other hand, Germany recorded outflows of $20.5 million and Brazil $3 million.
BTC products worldwide attracted over $1 billion as ETH products broke out of a five-week negative spell to bring in $86.9 million. Short BTC investment products brought in $8.8 million. With altcoins, SOL products saw outflows of $4.8 million, BNB $1.2 million, and STX $0.9 million. LTC and XRP observed inflows of $2 million and $0.8 million.
The large inflows were impressive. The crypto market’s performance was also equally impressive the past week. BTC rose by over 3% in that period.
BTC and Crypto Prices Can Rise Further
Growing inflows into crypto investment products symbolize renewed institutional interest and can push the value of the digital asset market up. Other factors also depict that the market is, in fact, about to take off.
For instance, the US presidential election can be a turning point this year and truly set the market ablaze. Of course, Donald Trump, the industry’s favored candidate, getting elected could mean asset prices begin climbing. In fact, that can occur if Kamala Harris wins, too—she recently called for crypto innovation in the country. Other factors, such as the US Federal Reserve potentially cutting interest rates in the foreseeable future, can also push BTC’s value up tremendously and keep it there.
