Institutional capital inflow: Bitcoin led the way with an inflow of $930 million in a single week, while Solana and XRP accumulated over $100 million.

CoinShares report shows that after several weeks of fluctuation, digital asset investment products welcomed an inflow of approximately $921 million, marking a resurgence of interest from market participants. This inflow was primarily driven by Bitcoin, with a weekly inflow of $931 million, and the cumulative inflow since the Fed's interest rate cut has reached $9.4 billion. The main factors driving the optimistic sentiment are the lower-than-expected CPI readings and the strong expectations for a 25 basis point rate cut at the upcoming Fed meeting (with nearly a 97% probability). Meanwhile, Solana and XRP still received inflows of $29.4 million and $84.3 million respectively, just before the launch of the ETF in the U.S., although the rate of inflow has slowed.

Macroeconomic positives boost: CPI below expectations enhances Fed's confidence in interest rate cuts

Despite the cryptocurrency market still being in an unpredictable cycle, recent optimism has resurfaced in the market, mainly due to positive macroeconomic signals from the United States. The latest Consumer Price Index (CPI) reading was below expectations, further strengthening the market's expectation that the Fed may soon implement interest rate cuts. Market pricing reflects that the likelihood of a 25 basis point rate cut at the upcoming policy meeting is close to 97%.

The easing of the inflation outlook has helped restore market confidence after weeks of uncertainty, especially as traders weigh the broader economic impact of the ongoing U.S. government shutdown. This optimism is also reflected in the activity of exchange-traded product (ETP), with global trading volume reaching $39 billion this week, significantly higher than the year-to-date average of $28 billion.

Institutional funds significantly flow back: Bitcoin leads

A report from CoinShares indicated that after several weeks of unstable trading, investment products in digital assets recorded an inflow of approximately $921 million this week, showing a revival of interest among market participants.

Regional and Asset Class Inflow Analysis:

• The United States ranks first with an inflow of approximately 843 million dollars.
• Germany recorded one of the strongest weekly inflows on record, reaching $502 million.
• Switzerland experienced a capital outflow of $359 million, but analysts pointed out that this is mainly a transfer of assets between different providers, rather than a widespread market exit.
• Bitcoin (BTC) remains the main beneficiary, attracting $931 million in inflows this week. Since the Fed began cutting interest rates, the total inflow to Bitcoin has reached $9.4 billion, totaling $30.2 billion year-to-date.
• Ethereum (ETH) recorded its first outflow of funds in over a month, with an outflow amounting to 169 million USD, despite the continued demand for leveraged products linked to Ethereum.

Altcoin ETF Approaches: Solana and XRP Fund Inflows Slow Down

Against the backdrop of market expectations for the US to soon launch an ETF, the inflow of funds into Solana (SOL) and Ripple (XRP) has slowed down, but remains stable.

• Solana (SOL) this week saw an inflow of $29.4 million.
• XRP inflow of funds this week is $84.3 million.

Despite the slowdown in capital inflows, the scale still reflects institutional investors' ongoing interest in these major altcoins. The report emphasizes that global investors remain particularly sensitive to changes in inflation data and comments from the Fed, with the current focus shifting to the upcoming Federal Open Market Committee (FOMC) meeting and the speech by its chair Jerome Powell. Analysts believe that any deviation from current expectations, whether positive or negative, could quickly impact market direction.

Conclusion

This week's large-scale capital inflow into digital asset investment products clearly indicates that the improvement in the macroeconomic environment and expectations for interest rate cuts are effectively reigniting institutional investors' interest. Bitcoin, as the undisputed primary beneficiary, further solidifies its status as a macro hedging asset. With the market's focus shifting towards Fed policy and the upcoming Solana and XRP ETFs, the flow of funds continues, suggesting that the cryptocurrency market is expected to welcome a new growth cycle driven by macro liquidity.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The cryptocurrency market is subject to significant fluctuations, and investors should make decisions cautiously.