Crypto investments witnessed a significant surge in capital inflows last week, marking the largest influx in five weeks, as detailed in the CoinShares’ Digital Asset Funds Weekly Report published on August 26.
Substantial Inflows Driven by Powell’s Speech
Digital asset investment products saw total inflows of $533 million from August 18 to August 24. This surge was largely influenced by comments made by Federal Reserve Chairman Jerome Powell during the Jackson Hole Symposium on August 23.
In his speech, Powell highlighted the progress made in controlling inflation and stabilizing the labor market without triggering a significant rise in unemployment. His remarks conveyed optimism regarding the Fed’s ability to balance price stability and maximum employment, suggesting that the first interest rate cut could occur in September. This positive outlook had a profound impact on the digital asset market, particularly benefiting Bitcoin (BTC), which saw substantial inflows of $543 million, reflecting its sensitivity to interest rate forecasts.
Mixed Performance for Ether and Blockchain Equities
In contrast, Ether (ETH) experienced outflows of $36 million. Despite this, newly launched spot Ether exchange-traded funds (ETFs) continued to attract investors, accumulating $3.1 billion in inflows over the month since their introduction. However, these gains were partly offset by significant outflows from the Grayscale Ethereum Trust (ETH), which amounted to $2.5 billion.
Blockchain equities also performed well, recording positive inflows for the third consecutive week, totaling $4.8 million.
Regional Investment Trends and Spot Bitcoin ETF Milestone
Regionally, the United States dominated the inflows, accounting for $498 million. Hong Kong and Switzerland also recorded notable inflows of $16 million and $14 million, respectively. Meanwhile, Germany saw minor outflows of $9 million, making it one of the few countries with net outflows year-to-date.
Spot Bitcoin ETFs reached a new high for August, with their combined value hitting approximately $58.4 billion on August 23, following a week of consistent positive inflows. Inflows on that day were particularly strong, totaling $252 million—the highest since July 22.
Leading Players in Spot Bitcoin ETFs
BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot Bitcoin ETF by total asset value, led the charge with a net inflow of $86.8 million. The Fidelity Wise Origin Bitcoin Fund (FBTC) followed closely with $64 million in inflows. Despite the Grayscale Bitcoin Trust (GBTC) experiencing an outflow of $35.6 million, its smaller counterpart, the Bitcoin Mini Trust (BTC), saw a $50.8 million inflow.
Other notable spot Bitcoin ETFs that saw significant inflows included Bitwise’s BITB with $42.3 million, Ark and 21Shares’ ARKB with $23.8 million, and VanEck’s HODL with $14.4 million. Meanwhile, Invesco’s BTCO and Valkyrie’s BRRR recorded smaller inflows, while the remaining funds saw minimal changes.
This surge in crypto investment inflows underscores the market’s sensitivity to macroeconomic signals and highlights the growing investor interest in digital assets amid shifting economic conditions.
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