Crypto Funds See $1.9B Inflows as Bitcoin ETFs Extend Streak
Bitcoin and Ether lead fund inflows while Fed’s first 2025 rate cut boosts investor demand
Cryptocurrency funds recorded a strong second consecutive week of inflows, adding $1.9 billion last week, according to data from CoinShares. The surge was led by Bitcoin exchange-traded funds (ETFs), which logged their fourth straight week of gains, bringing the four-week total to $3.9 billion, SoSoValue reported.
Bitcoin and Ether dominated investor interest, with inflows of $977 million and $772 million respectively. Solana and XRP also saw strong demand, pulling in $127 million and $69 million. The rally lifted the total assets under management (AUM) of global crypto exchange-traded products (ETPs) to a new year-to-date high of $40.4 billion, CoinShares’ head of research James Butterfill confirmed.
Bitcoin funds extend inflow streak to four weeks
Bitcoin ETFs once again attracted the lion’s share of inflows after topping the prior week with $2.4 billion. The latest figures highlight growing confidence among institutional investors as Bitcoin funds remain the primary driver of capital inflows into crypto markets.
In contrast, short-Bitcoin products continued to decline, suffering $3.5 billion in outflows with total AUM falling to a multiyear low of $83 million. Ether ETPs also saw strong momentum, with inflows helping push year-to-date totals to a record $12.6 billion.
Fed’s rate cut sparks positive response
The inflows came on the heels of the US Federal Reserve cutting its key interest rate by 25 basis points – the first reduction since 2024. The move initially triggered caution in markets, with Bitcoin briefly dipping, but optimism returned later in the week as liquidity expectations improved.
“After months of speculation, the US Federal Reserve cut interest rates last week. Although investors initially reacted cautiously to the so-called ‘hawkish cut,’ inflows resumed later in the week,” Butterfill noted.
Following the Fed’s decision, Bitcoin rose to multi-week highs above $117,000 on Thursday, while Ether briefly surged over $4,600 after starting the week near $4,500, according to CoinGecko data.
Investor sentiment remains cautious
Despite strong capital inflows and price gains, broader sentiment stayed mixed. The Crypto Fear & Greed Index, a market sentiment tracker, was neutral last week with a score of 53 but slid back into “Fear” territory on Monday, scoring 45.
Analysts say the shift underscores lingering caution among investors, even as institutional adoption and fund inflows continue to push the crypto market toward record levels.
