Crypto Investment Product Inflows Slow Amid Fed Caution

Crypto investment products continued their streak of inflows last week, but at a slower pace than previous weeks. The $230 million invested in crypto exchange-traded products (ETPs) was significantly lower than the $1.06 billion recorded the week prior.

The slowdown in inflows can be attributed to the market's interpretation of the US Federal Reserve's 'hawkish pause' after its meeting on Wednesday. This interpretation led to a reversal in investment flows, with strong inflows seen in the first two days of the week followed by sharp outflows on subsequent days.

Bitcoin funds were the clear leaders in terms of inflows, accounting for nearly all of last week's $230 million in gains. Bitcoin (BTC) funds saw $219.2 million invested, while Ether (ETH) funds experienced $27.5 million in outflows, ending its three-week streak of gains.