From outflows to inflows: Bitcoin ETPs rally amid surprising economic update

Bitcoin's recent inflows have rebounded significantly, recovering from a week of outflows. Last week, the cryptocurrency sector saw a total of $921 million in inflows, primarily driven by positive investor sentiment following lower-than-expected U.S. inflation data. This inflow contrasts sharply with the previous week's $513 million outflow. According to CoinShares' head of research, James Butterfill, the change in market sentiment stems from renewed confidence in potential U.S. rate cuts, supported by the updated CPI figures. Notably, Bitcoin alone attracted $931 million, effectively regaining its earlier losses. Conversely, Ethereum experienced its first withdrawal in five weeks, totaling $169 million, despite ongoing popularity for 2x leveraged ETPs. Overall, amid fluctuating conditions due to the U.S. government shutdown, total assets in crypto funds have reached $229 billion this year, marking a significant increase in investor activity.

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