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

Core Insights - Digital asset investment products experienced a significant rebound with $921 million in inflows over the past week, driven by renewed optimism regarding potential US interest rate cuts following softer inflation data [1][7] - Bitcoin products led the inflows with $931 million, while Ethereum products faced their first outflows in five weeks, totaling $243.9 million [5][7] Inflows and Trading Volumes - Global trading activity for exchange-traded products (ETPs) surged to $39 billion, significantly above the year-to-date weekly average of $28 billion, indicating strong investor confidence despite ongoing uncertainties [2][7] - The US accounted for the majority of inflows at $843 million, with Germany also reporting substantial inflows of $502 million, marking one of its largest weekly totals [2][7] Ethereum and Other Assets - Ethereum products recorded $169 million in outflows, marking a shift in investor sentiment after a period of strong inflows, although demand for 2x leveraged Ethereum ETPs remains robust [4][5] - Cumulative inflows for all Ethereum ETFs reached $14.35 billion, with assets under management at $26.39 billion, representing 5.55% of Ethereum's market capitalization [6]