Last week, the crypto market experienced a surge in investments, with digital asset investment products receiving a total of $533 million in inflows, the highest in five weeks. This influx of capital was largely attributed to comments made by Federal Reserve Chairman Jerome Powell at the Jackson Hole Symposium on August 23, where he discussed the Fed’s progress in stabilizing inflation and the labor market. Powell’s suggestion of a potential interest rate cut in September sent a positive signal to the digital asset market, particularly benefiting Bitcoin, which saw inflows of $543 million.
While Bitcoin flourished, Ether experienced outflows of $36 million. However, newly launched spot Ether exchange traded funds (ETFs) continued to attract inflows, totaling $3.1 billion since their debut. Despite this, the Grayscale Ethereum Trust (ETH) saw outflows of $2.5 billion. Blockchain equities also saw positive inflows for the third consecutive week, totaling $4.8 million. The United States accounted for the majority of inflows, receiving $498 million, while Hong Kong and Switzerland also saw significant inflows of $16 million and $14 million, respectively. Germany, on the other hand, experienced minor outflows of $9 million.
Spot Bitcoin ETFs reached a new high in August, with a combined value of around $58.4 billion on August 23. The week saw consistent positive inflows, with a particularly strong inflow of $252 million on Friday alone, the largest since July. BlackRock’s iShares Bitcoin Trust (IBIT) led the pack with a net inflow of $86.8 million, followed by Fidelity Wise Origin Bitcoin Fund (FBTC) with $64 million. While Grayscale Bitcoin Trust (GBTC) experienced an outflow of $35.6 million, its smaller Bitcoin Mini Trust (BTC) saw a $50.8 million inflow. Other spot Bitcoin ETFs also saw significant inflows, including Bitwise’ 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 recorded smaller inflows, while the remaining funds saw minimal changes.
Overall, the surge in crypto investments last week was driven by positive market sentiment following Powell’s remarks and the anticipation of a potential interest rate cut by the Fed. Bitcoin emerged as the preferred cryptocurrency for investors, with significant inflows and a new high in spot Bitcoin ETF value. Despite Ether experiencing outflows, the newly launched spot Ether ETFs continued to attract capital. Blockchain equities also saw positive inflows, highlighting the overall bullish sentiment in the crypto market. The outlook for digital assets remains positive, with strong investor interest and continued growth in various crypto investment products.
