Bitcoin and Ether dominate inflows amid Fed’s first rate cut of 2025
Global cryptocurrency investment funds attracted $1.9 billion in inflows last week, extending a broader uptrend driven largely by Bitcoin exchange-traded funds (ETFs), according to data from CoinShares.
The latest figures follow $3.3 billion in inflows the previous week, pushing total assets under management (AUM) in crypto exchange-traded products (ETPs) to $40.4 billion year-to-date, a new record.
Bitcoin remained the focal point for investors, securing $977 million in fresh inflows last week. This momentum marked the fourth consecutive week of positive flows, bringing the four-week total to $3.9 billion, according to SoSoValue.
In contrast, short-Bitcoin ETPs continued their steep decline, suffering $3.5 billion in outflows as bearish bets on the asset dwindled. Their total AUM dropped to a multi-year low of $83 million.
Ether also drew strong investor interest, adding $772 million in inflows, which lifted its year-to-date total to a record $12.6 billion. Meanwhile, Solana (SOL) and XRP posted inflows of $127 million and $69 million respectively, underscoring continued diversification in crypto fund exposure.
Fed’s Rate Cut Fuels Renewed Optimism
The inflows coincided with the U.S. Federal Reserve’s decision to cut interest rates by 25 basis points last Wednesday — its first rate reduction of the year.
“After months of speculation, the U.S. Federal Reserve cut interest rates last week. Although investors initially reacted cautiously to the so-called ‘hawkish cut,’ inflows resumed later in the week,” said James Butterfill, head of research at CoinShares.
Following the Fed move, Bitcoin briefly climbed above $117,000, while Ether surged past $4,600, reflecting renewed bullish momentum in spot markets.
Investor Sentiment Remains Mixed
Despite strong capital inflows, market sentiment showed caution. The Crypto Fear & Greed Index remained in neutral territory at 53 last week before dipping to 45 (“Fear”) on Monday, suggesting investors are still wary of macroeconomic headwinds.
With Bitcoin ETFs extending their winning streak and Ether ETPs setting new records, crypto funds appear to be entering a new growth phase — though sentiment signals suggest investors are not yet fully euphoric.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.