The purchase of Bitcoin-related exchange-traded products (ETP) by cryptocurrency investors has been on the rise due to concerns about potential interest rate cuts in September.
According to digital asset investment firm CoinShares, there were inflows of $533 million in crypto investment products from Aug. 18 to Aug. 24.
This purchase rate marks the highest in the past five weeks, driven by expectations of interest rate reductions in the US. On Aug. 21, US Federal Reserve Chair Jerome Powell hinted that the first rate cuts could occur in September 2024.
Among the different crypto investment products studied by CoinShares, Bitcoin-related ETPs experienced the largest inflows last week, accumulating $543 million.
The majority of these purchases came from BlackRock’s iShares Bitcoin Trust (IBIT), which saw inflows of $318 million. In contrast, Ether-related crypto investment products saw negative flows, resulting in outflows of $36 million during the same period.
