Bitcoin (BTC) and Cryptocurrency-based exchange-traded products (ETPs) saw $533 million in inflows globally in the past seven days.
According to data According to the analytical firm CoinShares, this is The largest inflow of capital into these financial products in five weeksThis increase came after the speech given by the head of the United States Federal Reserve (Fed), Jerome Powell, at the Jackson Hole Symposium.
As CriptoNoticias already reported, this annual event organized by the organization brings together bankers, ministers, economists and academics to discuss stock market and monetary issues that affect the entire world. In this context, Powell referred to a possible cutout US interest rate hikes starting in September and said: “The time has come to tighten monetary policy.”
In the following chart, you can see the inflow (or outflow) of money week by week in ETPs based on digital assets.
Weekly inflows and outflows of money into BTC and cryptocurrency-based ETPs. Source: CoinShares.
According to the report, financial products based on bitcoin recorded revenues of 543 million dollars and highlights that “interestingly, most of those inflows were on Friday, following Jerome Powell’s dovish comments, indicating BTC’s sensitivity to interest rate expectations.”
What happens in these cases is that, at higher interest rates, investors and institutions opt to seek refuge in Treasury bonds, considered by many to be “the safest investment in the world.”
However, if there is a possible cut, They may place their holdings in risk assets like stocks, BTC and cryptocurrenciesin order to obtain higher returns on investment.
In the case of products based on ether (ETH), the digital currency of Ethereum/” target=”_blank” rel=”noreferrer noopener”>Ethereumrecorded outflows totaling $36 million. However, it is important to note that new issuers continue to report inflows into exchange-traded funds (ETF) in the United States, with the exception of the Grayscale Ethereum Trust (ETHE), which has higher commission rates than other funds.
Inflows and outflows of money in BTC and cryptocurrencies during the last week. Source: CoinShares.
Another noteworthy fact is that, during the past week, most regions (with the exception of Sweden and Germany) recorded capital inflows into these products.
The United States led with net inflows of $498 million, followed by Hong Kong and Switzerland. Investments in these and other regions suggest that the global market has a positive outlookwhich could boost the price of bitcoin.
Inflows and outflows of money into digital asset ETPs by region. Source: CoinShares.
Bitcoin ETFs perform well in the United States
Following Jerome Powell’s speech, US exchange-traded funds (ETFs) based on the digital currency created by Satoshi Nakamoto reported revenues of 252 million dollars. In this way, they recorded their seventh consecutive day with money coming in.
The following chart, provided by SoSoValue, shows the daily money flow that these ETFs have had:
Money inflows and outflows into bitcoin ETFs in the United States. Source: SosoValue.
Since their market launch in January 2024, US Bitcoin ETFs have accumulated more than $17 billion in net inflows.
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.