Bitcoin has emerged as the frontrunner in a significant influx of digital asset investments, attracting an impressive $1.9 billion last week after the U.S. Federal Reserve implemented, referred to as a “hawkish cut” in interest rates. The recent surge in inflows signifies one of the most robust weeks this year, highlighting the rapid recovery of investor interest following the market’s absorption of the Fed’s decision.
Bitcoin led the charge with $977 million out of the total inflows, underscoring its pivotal position in the realm of digital asset investment. Despite short-bitcoin products experiencing $3.5 million in outflows, which has reduced their assets under management to a multi-year low of $83 million, the appetite for long-Bitcoin exposure continues to be robust. This divergence indicates that investors are returning to Bitcoin as confidence strengthens. Ethereum saw significant inflows of $772 million, bringing its year-to-date total to an impressive $12.6 billion and elevating its assets under management to a remarkable all-time high of $40.3 billion.
Other digital assets experienced robust demand, with Solana drawing in $127.3 million and XRP securing $69.4 million, indicating a growing confidence throughout the broader market. The United States dominated the inflows with a staggering $1.8 billion, while Germany, Switzerland, and Brazil contributed $51.6 million, $47.3 million, and $9.3 million, respectively. Hong Kong stood out, noting slight outflows amounting to $3.1 million. The overall trend has propelled total digital asset assets under management to a year-to-date peak of $40.4 billion.
In the last two days of the week, a staggering $746 million in inflows has been recorded, indicating that momentum is on the rise. Analysts indicate that the digital asset market is poised to match or potentially surpass last year’s $48.6 billion inflows, reflecting increasing confidence among investors that Bitcoin and the wider sector are strategically positioned to capitalize on the evolving monetary policy landscape.