Crypto products see $321 million in revenue, Ethereum fund lags

Key receivers

Digital asset investment products inflowed $321 million following the Fed's dovish stance. Ethereum experienced outflows for the fifth week in a row, totaling $29 million.

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Crypto products saw $321 million last week, with the exception of the Ethereum (ETH) fund, which recorded negative net flows of $28.5 million.

As reported by CoinShares, this disconnect between Ethereum funds and the rest of the market was created by Greyscale's spot Ethereum exchange-traded fund (ETF), ETHE, which continues to record outflows in line with the slow pace of ETH ETFs.

So, last week was the fifth straight week of outflows of ETH funds.

Meanwhile, Bitcoin (BTC) dominated with $284 million in inflows, accompanied by $5.1 million in short Bitcoin products. Moreover, Solana products have maintained a consistent low income, which last week attracted 3.2 million dollars.

The report highlighted that inflows into crypto funds could be driven by the 50 basis point interest rate cut by the Federal Open Market Committee (FOMC) last week.

As a result, total assets under management (AUM) for these products grew by 9% to $9.5 billion, up 9% from last week.

Regionally, the US leads with $277 million in revenue, followed by Switzerland with $63 million. Germany, Sweden, and Canada took in $9.5 million, $7.8 million, and $2.3 million, respectively.

Reversing costs of Bitcoin ETFs

US-traded Bitcoin ETFs recorded outflows of nearly $1 billion between August 26 and September 6, with BTC one of the most recent sell-offs.

However, these funds recovered $801 million between Sept. 9 and Sept. 20, with most of the losses recovered in the following two weeks, according to data from Farside Investors.

For the second week in a row, Fidelity's FBTC poured nearly $138 million of capital into its US-managed BTC ETF. Closely followed is ARK 21Shares' ARKB, which has roughly $102 million in revenue.

Additionally, Greyscale GBTC outflows have moved slowly, with $28.9 million in outflows from Bitcoin ETFs last week.

In particular, US-traded Bitcoin ETF flows saw interesting activity last week related to Fed tapering. The day with the highest volume of inflows was September 17, the day before the FOMC meeting, when $186.8 million in cash was directed into Bitcoin ETFs.

However, after the 50 basis point reduction was announced, these funds saw negative flows of $52.7 million. That was the only day to close with outflows last week.

Ethereum ETFs are still here.

In a tone shift, US-traded Ethereum ETFs saw $26.2 million in spending last week. This activity is a combination of the lack of activity in these funds and the steady and gradual outflow of Greyscale's ETHE.

Five of the nine Ethereum ETFs were dormant between September 16 and September 20, with ETHE inflows reaching $46.4 million.

BlackRock's ETHA recorded the largest inflows, with $14.3 million in cash flowing into the fund.

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