Last week, digital asset investment products attracted $921 million in inflows, driven by optimism over potential U.S. interest rate cuts, according to CoinShares. Despite recent market volatility due to U.S. fiscal policy uncertainty, inflows surged following lower-than-expected consumer price index data, boosting investor confidence.

Investors on Myriad platform predict a 25bps rate cut in October, with a 19% chance of two rate changes in 2025. CoinShares’ head of research noted a shift towards crypto ETFs for diversification, highlighting a trend away from speculative investing. UTXO data showed a rise in long-term Bitcoin holders, indicating a shift towards viewing Bitcoin as a store of value.

The United States led regional flows with $843 million in inflows, while Germany and Switzerland saw significant activity. Smaller markets like Hong Kong experienced minimal movement, with Bitcoin remaining the preferred asset for investors. Ethereum saw outflows for the first time in five weeks, with strong demand for leveraged Ethereum ETPs.

Investors displayed a “buy on the rumour, sell on the news” approach with Bitcoin and Ethereum, with positive sentiment quickly returning post-event. Solana and XRP ETF launches are eagerly awaited, with traders anticipating market movement. Leveraged Ethereum ETPs continued to attract interest despite Ethereum’s outflows.

Read more at Yahoo Finance: Crypto Funds Pull in $921M on Fed Rate Cut Optimism