Crypto Funds Extend Positive Results With $321M Weekly Inflows

Crypto investment products continue to garner high investor interest as the funds post a second consecutive week of inflows.

According to a report by crypto investment firm CoinShares, the global digital asset fund generated a total of $321 million in revenue last week. This figure is slightly lower than last week's $436 million.

According to the report, remittances to the United States accounted for a significant share of the total amount of remittances, amounting to $277 million. Switzerland follows with $63 million.

Germany, Sweden and Canada, however, did not make any progress, with the trio taking in $9.5 million, $7.8 million and $2.3 million respectively.

The Fed's dovish stance increases income flows

CoinShares believes the inflow was largely influenced by the US Federal Reserve's (Fed) decision to implement a 50 basis point interest rate hike last week. The move has led to increased investments in cryptocurrencies and other high-risk assets.

Thus, crypto funds saw a 9% increase in their total assets under management (AUM). Additionally, total investment products volume reached $9.5 billion, up 9% from last week.

Bitcoin leads the wave.

According to CoinShares, BTC-based funds were the top beneficiaries of the revenue last week, earning $284 million. The report added that short bitcoin investment products generated $5.1 million in revenue as investors took advantage of bitcoin's recent price movement.

On the other hand, Ethereum funds continue to underperform Bitcoin funds. The funds continued to record outflows for the fifth consecutive week, with $29 million in outflows last week.

CoinShares pointed out that outflows from ETH funds are limited by steady outflows from the Grayscale Ethereum Trust (ETHE) as well as newly issued ETFs.

Meanwhile, Solana's investment products maintained small but steady weekly gains, with the fund posting $3.2 million in revenue last week.