crypto Investment Inflows Skyrocket
Last week, the crypto investment landscape witnessed a remarkable surge in capital inflows, marking the highest influx in five weeks, as per the latest CoinShares’ Digital Asset Funds Weekly Report released on Aug. 26.
The report unveiled that investment products related to digital assets attracted a total of $533 million in inflows between Aug. 18 and Aug. 24, predominantly fueled by the comments made by Federal Reserve Chairman Jerome Powell at the Jackson Hole Symposium on Aug. 23.
crypto Assets Respond to Powell's Remarks
In his address, Powell discussed the strides in curbing inflation and stabilizing the labor market without causing significant unemployment spikes. The speech exuded confidence in the Fed's ability to uphold price stability and maximum employment, indicating a positive economic outlook.
Speculation arose following Powell's hint at a potential interest rate cut in September, which injected optimism into the digital asset market. Consequently, bitcoin (BTC) became the preferred choice, witnessing inflows of $543 million, showcasing the market's sensitivity to interest rate predictions.
Meanwhile, ethereum (ETH) faced outflows of $36 million, although spot Ether ETFs continued to attract investments, amassing a total of $3.1 billion within a month since their launch. This was offset to some extent by outflows from the Grayscale ethereum Trust (ETH), amounting to $2.5 billion.
Additionally, blockchain equities recorded positive inflows for the third consecutive week, summing up to US$4.8 million.
Regional Trends in crypto Investment
Geographically, the United States saw the lion's share of inflows, receiving $498 million. Hong Kong and Switzerland also witnessed substantial inflows of $16 million and $14 million, respectively. However, Germany experienced minor outflows of $9 million, making it one of the few countries with net outflows year-to-date.
Spot bitcoin ETFs Achieve New Milestones
The value of spot bitcoin ETFs reached a new high of approximately $58.4 billion on Aug. 23, following consistent inflows throughout the week.
On that Friday, inflows spiked significantly, totaling $252 million, the largest since July 22. The iShares bitcoin Trust (IBIT) by BlackRock, the leading spot bitcoin ETF in total asset value, witnessed the highest net inflow of $86.8 million, closely trailed by Fidelity's Wise Origin bitcoin Fund (FBTC) with $64 million inflow.
While the Grayscale bitcoin Trust (GBTC) experienced an outflow of $35.6 million, its smaller counterpart, bitcoin Mini Trust (BTC), saw a substantial inflow of $50.8 million.
Noteworthy inflows were also recorded in other spot bitcoin ETFs, such as Bitwise’s BITB ($42.3 million), Ark and 21Shares’ ARKB ($23.8 million), and VanEck’s HODL ($14.4 million). Invesco's BTCO and Valkyrie's BRRR witnessed minor inflows, while the remaining funds experienced minimal fluctuations.
