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- Bitcoin led the market with US$931 million in inflows.
- Investor confidence improved after lower-than-expected US CPI data.
- Ethereum and other altcoins faced cooling flows before US ETF launches.
According to the report, digital asset investment products, led by bitcoin, attracted US$921 million in inflows, marking a strong rebound after weeks of uncertainty. The improvement followed softer-than-expected US inflation data, which lifted market sentiment and revived investor confidence in bitcoin and the broader crypto market.
The indicators hint at rising hopes that the Fed could bring more rate decreases in the remainder of the year. The trading volume also improved, reaching US$39 billion.
This also remained well above the average level for the year so far, standing at US$28 billion, indicating that institutional participation has continued. The improvement in macroeconomic indicators, combined with ongoing market participation, indicate that digital currencies continue to gain interest from both amateur and professional investors.
U.S. and Germany Drive Digital Asset Investment Growth
The United States topped the chart with net inflows of US$843 million, showing its increasing dominance in digital asset investment. Germany came in second, registering one of its biggest weekly performances ever, attracting US$502 million.
This reflected the growing appetite for linked investment products in Europe, driven by the growing regulatory clarity, while Switzerland recorded a negative outflow amounting to US$359 million.
This action, according to analysts, was driven by the transfer of assets from the provider, rather than pulling their investments from the market by the investors. Such activity has also reflected a form of consolidation that has been occurring in the European investment market for cryptocurrencies.
Bitcoin Dominates as Ethereum Faces Outflows
Bitcoin again topped the chart, attracting net inflows of US$931 million. This asset has experienced total net inflows of US$9.4 billion since the initial start of rate cutting in the US, clearly demonstrating strong institutional interest in the world’s leading digital currency.
Year-to-date net inflows currently stand at US$30.2 billion, although this is lower than last year’s record-breaking US$41.6 billion. However, Ethereum recorded net outflows of US$169 million, putting an end to its five-week streak of net inflows. Despite the slight fall, levered Ethereum instruments recorded strong trading activity, hinting that market positioning remains mixed.
On the other hand, influxes into Solana and XRP eased prior to the expected US ETF approvals, amounting to US$29.4 million and US$84.3 million, respectively. The aggregated data clearly implies that despite the prevailing macro environments, Bitcoin is still the digital asset of choice, although interest in alternative cryptocurrencies has dwindled.
Related Reading: Arthur Hayes Predicts Bitcoin to Skyrocket to $1 Million with Japan’s Economic Shift
