Key takeaways
Which region recorded the highest entries?
The United States has about $843 million in inflows.
How did Solana and XRP perform in terms of flows?
Solana saw inflows of $29.4 million and XRP $84.3 million, although flows have slowed ahead of US ETF launches.
The cryptocurrency market continues to move through an unpredictable cycle, oscillating between bullish momentum and sudden pullbacks. However, amid this volatility, new optimism has emerged.
Digital asset investment products saw inflows
CoinShares reported that digital asset investment products recorded inflows of around $921 million after several weeks of uneven trading, indicating renewed interest from market participants. However, general sentiment remained cautious.
Since the current US government shutdown has halted the release of key economic indicators, investors are navigating without clear direction on future monetary policy.
In fact, recent improvements in investor sentiment are largely due to encouraging macroeconomic signals in the United States.
The latest Consumer Price Index (CPI) reading was lower than expected, reinforcing expectations that the Federal Reserve could soon implement a rate cut.
Furthermore, market prices reflected a nearly 97% probability of a 25 basis point reduction at the next monetary policy meeting.
The improving inflation outlook has helped restore confidence after weeks of uncertainty, particularly as traders continue to weigh the broader economic implications of the current US government shutdown.
Furthermore, renewed optimism was also evident in exchange-traded products (ETP) activity.
Global trade volumes reached $39 billion for the week, well above the average of $28 billion so far this year.
Analysis of entries by region
The United States led the inflows, totaling approximately $843 million, while Germany recorded one of the most substantial weekly inflows ever recorded, with $502 million.
Switzerland, however, recorded outflows of $359 million, although analysts note that this change was largely due to asset transfers between suppliers, rather than widespread exits from the market.
bitcoin [BTC] remained the key beneficiary, attracting $931 million in admissions for the week.
Cumulative inflows since the Federal Reserve began cutting interest rates totaled $9.4 billion, and year-to-date totals reached $30.2 billion, still below the $41.6 billion recorded in the same period last year.
Ethereum [ETH]Meanwhile, it recorded its first week of outflows in more than a month, worth $169 million, despite continued demand for Ethereum-pegged leveraged products.
It flows into Solana [SOL] and ripple [XRP] moderated ahead of expected US ETF launches, with weekly inflows of $29.4 million and $84.3 million, respectively.
The report also highlights that global investors remain particularly receptive to changes in inflation data and comments from the Federal Reserve, with attention now turning to the upcoming decision from the Federal Open Market Committee (FOMC) and comments from Federal Reserve Chair Jerome Powell.
Analysts suggest that any deviation, positive or negative, from current expectations could quickly influence the direction of the market.
