Crypto ETFs record $436 million net inflows as hopes of 50bp rate cuts resurfaces

• Digital asset ETFs witnessed net inflows totaling $436 million last week.
• Bitcoin ETFs flipped to positive net flows of $436 million last week after ten days of consistent outflows.
• Ethereum ETFs extended their outflow streak with $19 million, while Solana ETFs recorded minor positive flows.

CoinShares' weekly report revealed that crypto exchange-traded funds (ETF) witnessed $436 million in inflows last week after hopes of the Federal Reserve (Fed) cutting interest rates by 50 basis points briefly spurred investor confidence.

Bitcoin ETFs regain inflows totaling $436 million, ETH ETFs suffer $19 million loss

According to CoinShares' weekly report, digital asset investment products witnessed $436 million in inflows last week. However, trading volumes dropped to $8 billion, lower than the average $14.2 billion weekly volume this year.

CoinShares noted that the inflows came following former New York Fed President Bill Dudley's statement on Friday suggesting a high possibility of a 50 basis point interest rate cut later this week.

On the regional scale, the US saw the highest inflows, totaling $416 million. Switzerland and Germany followed behind with inflows of $27 million and $10.6 million, respectively. Canada and Sweden witnessed outflows totaling $17.9 million and $4.6 million, respectively.

Bitcoin ETFs regained their lead among crypto asset classes, hitting $436 million in inflows last week after ten consecutive days of outflows totaling $1.18 billion.

Weekly Crypto Asset Flows

The confidence among investors last week is also visible in Bitcoin exchange depositing addresses, which hit its lowest figure since 2016 after dropping to 132,100 addresses, per CryptoQuant data. This indicates reduced selling pressure on spot exchanges.

However, Bitcoin's MVRV momentum indicator has been on a downtrend since BTC's initial dip below $66,750 in June. The declining MVRV momentum shows buyers are yet to initiate pronounced buying pressure to fuel a sustained price rally.

Meanwhile, Ethereum ETFs witnessed further outflows of $19 million following the heavy negative flows from Grayscale's Ethereum Trust. The weak flows may stem from concerns surrounding the Ethereum Layer 1 profitability following declining token burns and validator revenue since the Dencun upgrade in March.

In contrast, Solana products saw $3.8 million in inflows.