Cryptocurrency Funds Report Second Week of Inflows as Bitcoin ETFs Sustain Four-Week Streak

Cryptocurrency investment funds saw substantial traction for the second consecutive week, underscored by a surge in demand for Bitcoin exchange-traded funds (ETFs), which extended their inflows streak to an impressive four weeks.

According to data shared by CoinShares on October 22, cryptocurrency exchange-traded products (ETPs) collectively recorded a net inflow of $1.9 billion over the past week. Leading the charge were Bitcoin (BTC) and Ethereum (ETH), accumulating inflows of $977 million and $772 million, respectively, signaling strong investor confidence. Additionally, other major assets like Solana (SOL) and XRP (XRP) reflected growing institutional interest, recording inflows of $127 million and $69 million, respectively.

The total assets under management (AUM) for cryptocurrency ETPs skyrocketed to $40.4 billion, marking a record high and further cementing the heightened appetite among institutional investors. James Butterfill, Head of Research at CoinShares, observed, "These persistent inflows underscore the robust and growing demand for crypto investment products across a widening base of investors."

Bitcoin ETFs Propel Market Growth

Bitcoin-focused investment vehicles have emerged as a dominant force, amplifying overall market dynamics. Over the past four weeks, Bitcoin ETFs alone pulled in a remarkable $3.9 billion in cumulative inflows. Notably, $2.4 billion of that was amassed just last week—representing the highest single-week inflow within this timeframe.

While Bitcoin continued to dominate inflow trends, short Bitcoin ETPs—the bearish counterpart of such products—saw pronounced outflows, totaling $3.5 billion last week. This pushed their AUM down to $83 million, a sharp decline to multi-year lows. In contrast, Ethereum ETFs have proven resilient, sustaining robust inflows and driving their year-to-date tally to an all-time high of $12.6 billion, further reinforcing Ethereum’s status as a strong contender in the crypto investment landscape.

Impact of Fed Rate Cut on Cryptocurrency Markets

Investor sentiment received a notable boost following the U.S. Federal Reserve's announcement of a 25-basis-point interest rate cut—the first such measure taken this year. The decision, which came after months of speculation, had rippling effects on both traditional and cryptocurrency markets, creating a favorable macroeconomic environment for digital assets.

Initially approached with some skepticism and regarded by analysts as a "hawkish cut," the Federal Reserve's move gradually spurred optimism among investors. James Butterfill commented on the phenomenon, stating, "The Fed's long-anticipated rate cut initially elicited caution, but as confidence rebounded across financial markets, inflows into crypto funds resumed robustly, signaling renewed trust in the asset class amid shifting economic conditions."

Conclusion

The second consecutive week of inflows into cryptocurrency funds—and Bitcoin ETFs' impressive four-week streak—highlights growing confidence in digital assets amid evolving financial conditions. With record-breaking AUM figures and enthusiastic support for key assets like Bitcoin, Ethereum, Solana, and XRP, institutional demand continues to drive crypto’s expanding role in modern portfolios. Factors like Ethereum ETFs’ sustained strength and a positive response to the Federal Reserve’s rate cut further bolster expectations for continued momentum, positioning crypto investment products as pivotal players in the global financial ecosystem.