$921M Floods Into Crypto as Rate-Cut Hopes Ignite Investor Frenzy

Digital asset markets just witnessed their largest capital injection in months as institutional money storms back into crypto.

The Rate-Cut Catalyst

CoinShares data reveals a staggering $921 million poured into cryptocurrency products last week alone—the biggest weekly inflow since Bitcoin's last major rally. Investors are clearly positioning ahead of anticipated Federal Reserve policy shifts.

Where the Smart Money's Going

Bitcoin captured the lion's share with $865 million, while Ethereum saw respectable $33 million inflows. Even short-bitcoin products attracted $7 million—proof that bears haven't completely abandoned the arena.

The Institutional Stampede

This isn't retail FOMO—this is professional capital making calculated moves. Trading volumes spiked to $11 billion for the week, nearly double the year's average. When Wall Street starts betting on crypto, traditional finance types suddenly remember how to pronounce 'blockchain.'

The Fed hasn't even cut rates yet, but crypto markets are already pricing in the liquidity tsunami. Because nothing says 'sound monetary policy' like front-running central banks with volatile digital assets.

Investor confidence returns amid rate-cut hopes

According to James Butterfill, Head of Research at CoinShares, the market’s rebound came despite broader uncertainty caused by the ongoing U.S. government shutdown, which has limited the release of key economic data.

“The resulting absence of macroeconomic guidance has left investors with little direction on U.S. monetary policy,” Butterfill explained. “However, the lower-than-expected CPI data released on Friday helped restore confidence that further rate cuts are likely this year.”

The data shows that investors appear to be positioning for a more favorable monetary environment. The weekly trading volume in crypto ETPs remained robust at $39 billion, significantly higher than this year’s average of $28 billion per week.

U.S. and Germany lead global inflows

The U.S. led the way last week, pulling in $843 million into crypto funds. Germany followed with $502 million, one of its biggest weekly inflows yet — a clear sign that investor interest in Europe is picking up as market sentiment improves.

In contrast, Switzerland recorded $359 million in outflows, but according to CoinShares, this was mostly the result of asset transfers between providers, not actual investor selling.

Bitcoin leads; Ethereum faces outflows

Bitcoin continued to lead the market, accounting for the bulk of inflows at $931 million. Since the U.S. Federal Reserve began cutting interest rates, total Bitcoin inflows have now reached $9.4 billion. Year-to-date, Bitcoin investment products have attracted $30.2 billion, still trailing last year’s $41.6 billion total.

Ethereum, meanwhile, saw money move out for the first time in five weeks, with outflows hitting $169 million. Still, demand for Leveraged Ethereum products stayed strong, suggesting traders are betting on short-term price swings.

Solana and XRP had a quieter week, bringing in $29.4 million and $84.3 million in inflows, respectively. CoinShares noted that flows in both assets have cooled as the market awaits the launch of U.S. spot ETFs.

Market Outlook

Bitcoin and ethereum prices both ended the week higher, rising 3.5% and 3.1%, respectively, with most gains coming during Sunday’s short liquidation surge. As expectations of rate cuts grow and trading volumes remain solid, confidence in the digital asset market is quietly making a comeback.

Also Read: Glassnode Flags $7B bitcoin Outflow From Long-Term Holders