Digital Asset Funds Experience $1.2 Billion Inflow, Marking Third Consecutive Week of Growth

Digital asset funds saw a significant inflow of $1.2 billion last week. This is the highest amount since the week ending July 19. According to CoinShares, this marks the third week in a row of positive inflows.

What’s driving this growth? It seems to be the expectation of further interest-rate cuts in the U.S. CoinShares highlighted that U.S.-based funds accounted for $1.17 billion of the total inflows.

Recently, the U.S. bitcoin exchange-traded fund (ETF) sector received a boost. The Securities and Exchange Commission (SEC) approved physically settled options linked to BlackRock's ETF (IBIT). This ETF is the largest spot BTC fund in the U.S. by assets.

CoinShares noted that "the approval of options for certain U.S.-based investment products likely boosted sentiment." However, trading volumes didn’t rise as much as expected. In fact, they actually declined by 3.1% week-on-week.

Bitcoin funds alone attracted over $1 billion in inflows. Meanwhile, ether products added $87 million, breaking a five-week losing streak. This marks the first measurable inflows since early August.