Recent data shows a significant rebound in crypto investment, with $436 million flowing into various cryptocurrency products last week.
This surge, led predominantly by Bitcoin investments, marks a recovery from prior outflows that had plagued the market.
According to CoinShares, the inflows were driven by shifting market expectations around a possible interest rate cut by the U.S. Federal Reserve, anticipated on September 18. James Butterfill, CoinShares’ head of research, noted that the optimism around monetary policy likely spurred this renewed interest in crypto assets.
While overall crypto investments have surged, Ethereum has struggled to attract investors.
Despite the general influx of capital, Ethereum investment products experienced $19 million in outflows last week, adding to a troubling trend that saw $98 million in redemptions the previous week.
This decline is attributed to growing concerns over Ethereum’s profitability following recent upgrades.
Bitcoin continues to dominate the investment landscape, with $436 million in inflows reversing a previous $1.8 billion outflow streak.
The appetite for Bitcoin remains strong, as evidenced by the popularity of Bitcoin exchange-traded funds (ETFs), which have seen substantial net inflows since their launch.
In contrast, Ether ETFs have faced net outflows totalling $581 million since their debut in July.
The growing divergence in investment flows between Bitcoin and Ethereum has led to a significant drop in the ETH/BTC ratio, now at its lowest since April 2021.
