Last week, the Federal Reserve’s decision to trim interest rates set off a new wave of investment into digital asset funds, with CoinShares tracking $1.9 billion of fresh inflows.
The policy shift, a 25 basis-point cut announced after the September FOMC meeting, gave investors a clearer signal that risk assets could benefit from easier financial conditions.
James Butterfill, CoinShares head of research, noted that market traders initially hesitated as they interpreted the so-called “hawkish cut” as a mixed message. However, their sentiment flipped once markets had time to adjust to this policy change.
According to him:
“Inflows resumed later in the week, with $746 million entering on Thursday and Friday as markets began to digest the implications for digital assets.”
He noted that the momentum carried total assets under management in crypto investment products to $40.4 billion, the highest level recorded this year. Considering this, he said 2025 could rival or surpass last year’s $48.6 billion tally if the current pace continues.
Bitcoin dominates
Bitcoin remained the biggest draw, capturing $977 million in inflows last week. This was the third consecutive week of net gains since it overtook Ethereum as the preferred allocation.
As a result, BTC-focused funds have now seen inflows of nearly $4 billion this month, while their year-to-date flows stood at $24.7 billion. The funds manage more than $183 billion worth of assets in their various portfolios.
On the other hand, the appetite for short-Bitcoin products has continued to drop, with the funds losing $3.5 million last week and sliding to a multi-year low of $83 million under management.
The Short Bitcoin fund situation can be linked to investors’ reluctance to bet against Bitcoin because they believe the loose monetary policy tilts the balance back toward risk-on trades.
Altcoins draw $1 billion
Meanwhile, investors’ interest in altcoin products was pronounced last week, as this class of digital assets drew around $1 billion inflow.
Ethereum, the second-largest crypto asset by market cap, led inflows for these altcoins, drawing $772 million in fresh capital.
This inflow pushed its year-to-date total to $12.6 billion and sent assets under management in Ethereum products to a record $40.3 billion.
At the same time, smaller digital assets joined the rally with significant inflows.
According to CoinShares, Solana products attracted $127.3 million, while XRP funds brought in $69.4 million. Both assets have now cleared the $1.5 billion mark in 2025 inflows.
Cardano, Sui, Litecoin, and Chainlink drew around $6 million together, reflecting a broad, if lighter, spread of investor interest.