The global digital asset investment market has seen a major resurgence recently, marking a strong return for crypto-based currencies. According to CoinShares, global crypto investment products brought in $321 million in revenue last week.
This follows two weeks of exits, which show a change in investor sentiment as macroeconomic conditions, such as the US Federal Reserve’s recent decision to cut interest rates, play a major role in the direction of the crypto market.
Bitcoin and Solana Lead the Increase in Inflows
As revealed in a CoinShares report, Bitcoin-based investment products continue to dominate the market, accounting for most of last week’s revenue.
CoinShares shows that Bitcoin products alone saw a total inflow of $284 million. This marked a major change in the trajectory of the leading crypto, which has been outperforming other digital assets in attracting institutional investment.
It is interesting that short Bitcoin products – those that profit from the drop in the price of Bitcoin – also saw a limited entry of 5.1 million dollars, which shows that some investors remain cautious, protecting the possible volatility.
Solana-based funds have also been in the spotlight in recent weeks. According to CoinShares, the asset saw $3.2 million in net inflows last week.
However, while Bitcoin and Solana enjoyed positive momentum, Ethereum-based investment products saw another week of total outflows.
A CoinShares report shows that last week alone, Ethereum products recorded $29 million in outflows, extending their losses for the fifth consecutive week. This brings the total outflow of Ethereum-based funds to $187.7 million during this period.
What About Regional Flow?
By region, the US remains the leading player in the global crypto investment market, with US-based funds bringing in $277 million.
Switzerland followed with its second largest weekly inflow of $63 million, while countries such as Germany, Sweden, and Canada faced total outflows, showing a very mixed picture of global crypto investment.
Notably, the rebound seen in both Bitcoin and Solana, as revealed by CoinShares Head of Research James Butterfill was largely driven by the change in US monetary policy, especially the Federal Open Market Committee’s (FOMC) “worst case scenario” and the basis of 50. -point of interest rate reduction.
This financial ease has provided an ideal environment for risky assets, including cryptocurrencies, fueling the growing global penetration of digital asset products.
So far, Bitcoin’s positive entry is reflected in its market performance, with BTC now trading back above the psychological level of $60,000. In particular, at the time of writing, Bitcoin is trading at $62,775, a slight decrease of 1.1% over the previous day.
This increase in price performance has also increased the valuation of the Bitcoin market from less than $1.15 trillion last week to currently more than $1.25 trillion.
The featured image was created with DALL-E, a Chart from TradingView