Over the past week, global cryptocurrency-based investment products have experienced a significant resurgence, attracting substantial weekly inflows of $921 million. The latest report from CoinShares highlights the positive impact of U.S. inflation data, which came in below expectations, fueling hopes for potential interest rate cuts. Trading volumes have surpassed the annual average, indicating renewed investor confidence.
U.S. and Germany Lead Fund Inflows
In terms of regional distribution, the United States recorded the highest inflows with $843 million, while Germany showcased a near-record weekly increase of $502 million. Meanwhile, Switzerland saw outflows of $359 million, though these movements were attributed to asset transfers among providers rather than selling pressure. Global trading volumes for cryptocurrency-based investment products soared to $39 billion weekly, well above the annual average.
Investor interest was notably revitalized by the partial government shutdown in the U.S., which created uncertainty in data flow. This gap was somewhat offset by the positive effects of inflation data. The moderation in inflation bolstered expectations that the Federal Reserve might contemplate further interest rate reductions within the year.
Bitcoin Surges While Ethereum Retreats, Solana and XRP Stall
Bitcoin 
$91,967-based investment products took the spotlight with inflows reaching $931 million for the week. Compared to the period when the Fed’s rate-cutting cycle began, total inflows have now amounted to $9.4 billion and $30.2 billion since the start of the year. Conversely, Ethereum 
$3,139-based investment products saw a halt in their five-week increase, experiencing outflows totaling $169 million. There was also sustained interest in leveraged investment products.
Movements in Solana 
$143 and XRP-based investment products have slowed as the anticipated U.S. ETF launches draw near. Solana-based products experienced limited outflows of $29.4 million, while XRP-based products saw outflows totaling $84.3 million.
This renewed investor interest reflects optimism in digital asset markets, driven by macroeconomic factors and strategic investment shifts. The dynamics within specific cryptocurrencies highlight how investors strategically reposition portfolios while anticipating upcoming market developments. As regulatory and economic landscapes evolve, such capital flows underscore the agile and responsive nature of cryptocurrency investments.
