Cryptocurrency investment products saw a sharp rebound last week, with $436 million in net inflows, according to a recent report by CoinShares. This marks a positive shift after two consecutive weeks of outflows, driven by market expectations of a potential interest rate cut from the United States Federal Reserve.

Crypto investment products flows by asset. Source: CoinShares

CoinShares’ head of research, James Butterfill, commented on the surge, stating: “The inflows toward the end of the week were likely driven by market anticipation of a 50 basis point interest rate cut on September 18th.” Despite this, trading volumes across crypto investment products remained flat at $8 billion, significantly lower than the $14.2 billion average recorded for 2024.

Bitcoin Dominates as Ethereum Faces Further Outflows

Bitcoin investment products were the primary beneficiaries of the inflows, registering $436 million in positive flows, reversing a previous 10-day streak of outflows that totaled $1.8 billion. Solana, Litecoin, and Cardano also saw modest inflows, with Solana witnessing its fourth consecutive week of positive investment.

Source: CoinShares

In contrast, Ethereum continues to struggle. Ether products experienced $19 million in outflows between September 9 and 13, adding to the $98 million loss from the previous week. This negative trend is attributed to concerns over Ethereum’s profitability post the Dencun upgrade. Since the debut of Ether exchange-traded funds (ETFs) in July, there have been $581 million in net outflows, while spot Bitcoin ETFs have taken in over $17 billion in the same period.

As the ETH/BTC ratio falls below $0.04, its lowest point since April 2021, Bitcoin remains the preferred choice for investors.