Crypto Inflows Hit $1.9B After Fed’s First Rate Cut of 2025

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Crypto Inflows Hit .9B After Fed’s First Rate Cut of 2025 — Crypto Inflows Hit 19B After Feds First Rate Cut of.jpeg

Digital asset investment products saw a significant increase in inflows last week, totaling $1.9 billion following the Federal Reserve’s first interest rate cut of 2025. This data, as reported by CoinShares, marks the second consecutive week of gains for the sector, pushing total assets under management (AuM) to a year-to-date high of $40.4 billion.

The inflows were driven by a surge in investor interest in crypto products, with $746 million flowing in on Thursday and Friday alone. Bitcoin funds led the way with $977 million in inflows, following a previous week’s inflow of $2.4 billion. This brought Bitcoin’s four-week total to $3.9 billion, according to SoSoValue.

While Bitcoin saw a strong influx of capital, short-Bitcoin products experienced weakening, recording $3.5 million in outflows and driving their total AuM to a multiyear low of $83 million. Ethereum also benefited from the positive market sentiment, attracting $772 million in inflows, pushing its year-to-date total to a record $12.6 billion.

Other cryptocurrencies like Solana and XRP also drew investor interest, with inflows of $127.3 million and $69.4 million, respectively. The market reaction to the Fed’s rate cut was volatile, with Bitcoin briefly reaching above $117,000 before retracing to $115,089.

Institutional interest in crypto remained strong through spot ETFs, with Bitcoin spot ETFs seeing a total net inflow of $222.6 million on September 19. BlackRock’s iShares Bitcoin Trust led the way with $246.1 million in daily inflows, while Grayscale’s GBTC posted $23.5 million in outflows.

Overall, the sector’s AuM hit a record high of $40.3 billion, coinciding with a flurry of ETF activity in Washington. The U.S. Securities and Exchange Commission received five new applications for crypto ETFs, signaling issuers’ growing interest in products tied to assets beyond Bitcoin and Ethereum.

The pressure on regulators intensified as the SEC approved new listing standards for exchanges to list commodity-based trust shares, including crypto spot ETFs, without case-by-case reviews. This move is expected to expedite the listing process and benefit products like Solana and XRP spot funds.

Grayscale also made history with the approval of its Digital Large Cap Fund (GDLC), the first multi-crypto ETP to hit the market. Additionally, two new ETFs, the Dogecoin ETF (DOJE) and spot XRP ETF (XRPR), began trading in Chicago, with both funds showing strong initial trading volumes.

In conclusion, the crypto market continues to see strong investor interest and growth, with the influx of capital into crypto funds and the approval of new ETFs signaling a positive outlook for the industry. Investors are eagerly awaiting the launch of new products and the continued evolution of the digital asset investment landscape.