Crypto Funds Roar Back With $1.07 Billion Inflows as Rate-Cut Hopes Surge

Digital asset investment products experienced a significant turnaround, recording $1.07 billion in inflows after four consecutive weeks of outflows totaling $5.7 billion. This surge in investor confidence is attributed to comments from Federal Open Market Committee member John Williams, which fueled speculation that the US Federal Reserve might implement an interest rate cut as early as December.

Lower interest rates reduce the opportunity cost of holding non-yielding assets like Bitcoin, making risk assets more attractive to institutional investors. The US accounted for 93% of the total inflows, with Canada and Switzerland also seeing capital additions, while Germany experienced outflows. Bitcoin attracted $464 million, Ethereum $309 million, and XRP saw a record $289 million inflow.

Further supporting the bullish sentiment, short-Bitcoin ETPs saw minor outflows, and on-chain data showed significant XRP supply moving off centralized exchanges, suggesting investors are locking assets away. The sustained inflow depends on the interplay between Fed policy, institutional demand via ETPs, and evolving market supply dynamics.

(Source：BeInCrypto)