Stock Market Rebound Revives Demand for Crypto Funds

Inflows into cryptocurrency investment funds amounted to $176 million from August 4 to August 10, following an outflow of $528 million the previous week, according to data from CoinShares.

Analysts attributed the recovery in positive dynamics to a resurgence in demand after prices fell to attractive buying levels.

The volume of assets under management by product issuers dropped from $90 billion to $75 billion before rebounding to $85 billion.

The turnover of ETP increased from $14.8 billion the previous week to $19 billion.

Investor interest was concentrated on Ethereum funds, which saw inflows of $155 million. Year-to-date figures surged to $862 million, the highest since 2021. Experts attributed the trend to inflows into ETH-ETF.

Clients added $13 million to bitcoin-related products after a $400 million outflow the previous week. Experts noted that a return to positive territory occurred only at the end of the week.

Investors withdrew $16 million, the highest since May 2023, from structures allowing short positions on digital gold, following previous inflows of $1.8 million—23% of AUM.

Tools based on a basket of altcoins attracted $18.3 million (compared to $18.1 million the previous week).

Michael Terpin, founder of Transform Ventures, predicted that bitcoin could rise above $100,000 if Donald Trump wins the U.S. presidential election.

Earlier, analysts from the cryptocurrency exchange Coinbase attributed the decline in the first cryptocurrency’s rate to seasonality. According to them, the digital asset market faced a traditional downward trend for August.