Crypto investment products have continued to enjoy strong support from investors, marking their second consecutive week of inflows. According to a recent report by CoinShares, the global digital asset funds accumulated a total of $321 million in inflows last week, driven in part by favorable economic conditions.

US Leads Global Inflows

The United States took the lead in crypto fund inflows, accounting for the majority of the total with $277 million. Switzerland followed with $63 million in inflows, marking its second-largest weekly inflow of the year. However, other countries like Germany, Sweden, and Canada experienced outflows. Germany saw $9.5 million leaving its crypto funds, Sweden lost $7.8 million, and Canada faced outflows of $2.3 million.

CoinShares attributes this inflow surge to the US Federal Reserve’s recent decision to cut interest rates by 50 basis points. This move, which typically lowers borrowing costs, increased investor appetite for riskier assets like cryptocurrencies. Following the rate cut, the total assets under management (AUM) in crypto funds rose by 9%, while total investment product volumes surged to $9.5 billion, up from the previous week.

Bitcoin Dominates Investment Flow

Bitcoin-based funds were the biggest winners, pulling in a staggering $284 million last week. Investors flocked to these funds, buoyed by Bitcoin’s positive price movements. Even short-Bitcoin funds, which allow investors to bet against the cryptocurrency, saw inflows totaling $5.1 million.

In contrast to Bitcoin’s success, Ethereum-based funds are still facing difficulties. The funds have now recorded outflows for five consecutive weeks, with $29 million leaving Ethereum products last week alone. CoinShares suggests that the ongoing outflows are largely due to withdrawals from Grayscale’s Ethereum Trust (ETHE) and limited investment from newly launched exchange-traded funds (ETFs).

Solana Sees Steady Inflows

While Ethereum funds continue to struggle, Solana-based investment products are showing consistent, albeit modest, growth. Solana recorded $3.2 million in inflows last week, highlighting growing interest in the blockchain network.

The ongoing inflows into crypto funds signal growing confidence in digital assets, particularly following the Fed’s interest rate cut. With Bitcoin leading the charge and Solana steadily attracting attention, the crypto market may continue to see robust investment in the coming weeks. However, Ethereum’s challenges could persist unless there is a significant shift in market sentiment.