Bitcoin Updates Today: Investors Turn to Bitcoin ETPs as Secure Investments During Fed-Related Uncertainty
- Crypto ETPs saw $921M net inflows last week, driven by Bitcoin's $931M surge amid Fed rate-cut expectations. - Ethereum faced $169M outflows for first time in five weeks as investors shifted to Bitcoin as a macro hedge. - U.S. ($843M) and Germany ($502M) led inflows, with BlackRock's Bitcoin ETP attracting $324M alone. - Market awaits Fed's October 29 rate decision (97% cut probability) and T. Rowe Price's crypto ETF filing.
Last week, investor sentiment improved significantly as cryptocurrency exchange-traded products (ETPs) experienced a net inflow of $921 million, according to
The dominance of Bitcoin in these inflows highlighted its reputation as a safe-haven investment. The $931 million added last week brought the total since the Fed began rate cuts in September to $9.4 billion, based on data from CoinShares. So far this year, Bitcoin ETPs have accumulated $30.2 billion, though this is still 38% less than the $41.6 billion seen last year. James Butterfill, head of research at CoinShares, credited the recovery to the latest CPI numbers, which "renewed hopes for additional rate cuts" amid ongoing economic uncertainty, as reported by Cointelegraph.
Ethereum, on the other hand, experienced its first weekly outflows in five weeks, with daily redemptions totaling $169 million. Nevertheless, leveraged ETH ETPs continued to attract interest, and the asset has seen $14.034 billion in inflows so far this year. Analysts observed that Ethereum's recent performance stands in contrast to Bitcoin's stability, with investors increasingly favoring the more established cryptocurrency, according to
Looking at regional trends, the U.S. and Germany emerged as major contributors to the inflows. U.S. investors were responsible for $843 million, with BlackRock’s Bitcoin ETP alone drawing $324 million. Germany contributed $502 million, marking one of its highest weekly inflows ever, while Switzerland saw $359 million in outflows, mainly due to asset transfers between providers rather than widespread selling, as reported by
Other altcoin ETPs, such as those for
Currently, crypto funds have $229 billion in assets under management, with $48.9 billion in inflows so far this year. Butterfill pointed out that global ETP trading volumes reached $39 billion last week, surpassing the 2025 average of $28 billion, which demonstrates strong liquidity and growing institutional participation, according to
Market watchers continue to pay close attention to the Federal Reserve’s policy direction, with the likelihood of a 25-basis-point rate cut at the October 29 meeting nearing 97%.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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