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Digital Asset Funds Saw $29M in Net Inflows Last Week as Investors Bet on Bitcoin
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Digital asset funds saw $29 million in net inflows last week after the latest inflation data took off some pressure on the Federal Reserve to continue hiking rates. Last week was the first time digital asset funds recorded positive flows after three weeks of outflows.
Crypto Funds Reclaim Positive Sentiment as Odds of New Rate Hikes Slim Down
Digital asset investment funds recorded $29 million in net inflows last week, ending the three-week outflow streak. According to CoinShares, the improved sentiment likely comes from a smaller-than-expected annual inflation rate increase in July, reducing the odds of another rate hike in September.
“We believe the improved sentiment is due to the recent US inflation data, which was slightly below expectations, signifying that a September rate hike is less likely.”
– CoinShares wrote in the report.
Bitcoin-related digital asset investment products attracted most of the positive sentiment, seeing $27 million in inflows after recording $144 million in outflows over the previous three weeks. Short-bitcoin investment funds saw $2.7 million in outflows last week and were also the only asset to register negative fund flows.
On a regional basis, most fund activity was recorded in Canada, accounting for $24 million in inflows. Meanwhile, Switzerland was the only nation to see significant inflows, totaling $8 million.
SEC Delays Decision on Cathie Wood’s Bitcoin ETF
The latest fund flows data signals that sentiment for Bitcoin and other crypto investment products remains positive despite low market volumes.
Crypto funds enjoyed a wave of optimism in June after BlackRock, the largest asset manager in the world, filed an application for a spot Bitcoin exchange-traded fund (ETF). Shortly afterward, a string of renowned Wall Street financial institutions followed suit, including Invesco, WisdomTree, and Fidelity Investments.
Cathie Wood’s ARK Invest also filed to launch a spot Bitcoin ETF with the SEC. However, the securities regulator delayed its decision on the approval of this particular fund last week. The deadline for the Commission to announce some sort of decision on Ark 21Shares Bitcoin ETF was August 13. The SEC said in a Friday filing it was seeking public comment on one of the amendments in the application, effectively postponing the date for its final decision.
This article originally appeared on The Tokenist
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