The charts are turning green, traders are smiling again, and the crypto market is waking up from a prolonged bout of blues. The dynamic is accelerating and outstandings are exploding. In one week, crypto products listed on the stock exchange (ETP) saw a surge of capital. And this boost owes nothing to chance. A well-oriented inflation index in the United States has revived the appetite for bitcoin, and with it the entire market.
In brief
- Bitcoin captures $931 million in inflows after a red week for ETPs.
- US inflation at 3% revives hopes of a rate cut by the Fed.
- Ether, Solana and XRP are seeing their flows slow as US ETF launches approach.
- Total crypto funds under management now reach $229 billion according to CoinShares.
Bitcoin leads the way after the CPI
With $931 million in net inflows in one week, bitcoin has regained control of the ETP market. This spectacular rise comes after 513 million exits the previous week. At the origin of this reversalwelcome news: US inflation rose 0.3% in September, bringing the annual rate down to 3%, below market expectations.
This surprise has given new wings to institutional investors who are once again anticipating a fall in interest rates. According to James Butterfill, research director at CoinShares:
The current paralysis of the US government, and the resulting absence of key macroeconomic data, have left investors without clear guidance on the direction of US monetary policy. However, Friday's release of lower-than-expected inflation data (CPI) helped revive confidence in further rate cuts this year.
The United States recorded $843 million in inflows, while Germany surprised with $502 million. Switzerland, for its part, posted outflows of 359 million, due to transfers rather than liquidation. In short, confidence is returning, especially around BTC.
Altcoins slow down, but the crypto market hangs on
If bitcoin soars, other cryptos take a break. Ether, for example, lost $169 million, breaking a five-week streak of positive entries. Still, 2x leveraged ETPs on ETH remain popular. Solana, after very good momentum, only attracts 29.4 million, down 81%. As for XRP, its 84.3 million entries hide a clear slowdown before the expected launch of crypto ETFs in the United States.
What does this say? A more selective crypto market, focused on the strength of BTC. CoinShares confirms this in its report:
Despite this, 2x leveraged ETPs remain popular. Flows into Solana and XRP slowed ahead of the US ETF launches, recording $29.4 million and $84.3 million, respectively.
Some notable figures
- $931M: amount of net inflows into Bitcoin ETPs last week;
- $115,654: current price of bitcoin, new symbolic level for traders;
- $9.4 billion: cumulative inflows since the Fed started cutting rates;
- $30.2 billion: total amount invested in Bitcoin ETPs in 2024 (still below $41.6 billion in 2023);
- $229 billion: total crypto assets under management in ETPs, all assets combined.
The tide is also turning towards derivative products. As ETPs attract capital, the bitcoin options market is exploding. Traders are pumping in $63 billion, a record level. Proof that the crypto industry, boosted by macro, is far from having said its last word.
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