Crypto investment products have recovered following two weeks of outflows. Bitcoin led the charge with a $436M inflow, reversing a 10-day outflow of $1.18B. This increase occurred as markets expected a likely 50 basis point rate drop on September 18th.
Trading volumes in ETFs were steady at $8B, falling below the 2024 average of $14.2B. Short-bitcoin products experienced an outflow of $8.5M, snapping a three-week inflow trend.
Yet, Ethereum saw $19M in withdrawals because of worries over Layer 1 profitability. Solana maintained its upward trajectory, with $3.8M in inflows. Regionally, the United States led with $416M in inflows. Switzerland and Germany also witnessed positive flows, while Canada suffered outflows.
Despite optimistic investment patterns, the cryptocurrency market began the week on a negative note. Bitcoin dropped below $60,000, trading around the $58K level. Ethereum took a harsher hit, falling 4.5% to approximately $2,300. This market activity emphasizes the volatility of cryptocurrency. While financial products, notably Bitcoin, have seen increased interest, short-term market moves remain volatile.
