Crypto Markets News: Bitcoin and Ethereum Lead Investment Inflows Amid ETF Developments

Investment Inflows Surge Amid Market Optimism

Crypto investment inflows hit $1.2 billion last week, marking three consecutive weeks of positive growth since September 9. This surge comes amid growing optimism in the market, fueled by bullish macroeconomic developments and other value-boosting events in the finance sector. Additionally, September broke its typical trend of poor performance, creating the strongest starting point for Bitcoin (BTC) and the broader crypto market heading into October.

Crypto Inflows: A Breakdown

• Digital asset investment products saw inflows of $1.2 billion last week.
• Bitcoin recorded $1.070 billion in positive flows.
• Short-Bitcoin investment products attracted $8.8 million in inflows.
• Ethereum (ETH) ended a five-week outflow streak, gaining $87 million.

The US leads from a regional standpoint with $1.17 billion, with positive economic data contributing to this boost.

Factors Driving the Surge

The Federal Reserve's 50 basis point (bps) interest rate cut in September sparked a wave of liquidity, benefiting riskier assets like Bitcoin. Combined with cooling inflation, markets are now bracing for further rate cuts by the end of the year.

Furthermore, the recent approval of options trading in the US has provided momentum to crypto investment inflows. BlackRock’s spot Bitcoin ETF secured options trading approval from the US SEC, a development expected to bring more liquidity and enhance market stability. This opens the door for potential approval of Ethereum ETFs, a widely discussed topic.