Crypto Investment Inflows Surged Last Week Following Powell’s Speech – CoinShares
Veronika Rinecker is based in Germany, studied international journalism and media management. She specializes in politics and regulation, energy, blockchain, and fintech. Since 2017, she has been...
Crypto investments saw a significant influx of capital last week, marking the largest inflows in five weeks, according to the CoinShares’ Digital Asset Funds Weekly Report published on Aug. 26.
The asset manager revealed that digital asset investment products saw inflows totalling $533 million for the week from Aug. 18 to Aug. 24, largely driven by remarks made by Federal Reserve Chairman Jerome Powell at the Jackson Hole Symposium on Aug. 23.
In his speech, Powell discussed the progress made in reducing inflation and cooling the labor market while avoiding a sharp increase in unemployment. Overall, the speech conveys confidence in the Fed’s ability to achieve its dual mandate of price stability and maximum employment.
Powell’s suggestion that the first interest rate cut could occur in September sent a positive signal to the digital asset market, leading to a strong preference for Bitcoin (BTC). The cryptocurrency saw inflows of $543 million, underscoring its sensitivity to interest rate expectations.
Ether (ETH), on the other hand, experienced outflows of $36 million. However, newly launched spot Ether exchange traded funds (ETFs) continued to attract inflows, totaling $3.1 billion in the month since their debut. This was partially offset by outflows from the Grayscale Ethereum Trust (ETH), which amounted to $2.5 billion.
Blockchain equities also saw positive inflows for the third consecutive week, totaling US$4.8 million.
Regionally, the United States accounted for the majority of inflows, receiving $498 million. Hong Kong and
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