Inflows Surge on Dovish FOMC Stance
Digital asset investment products saw significant inflows of $321 million last week. This is now a second week of positive sentiment for the digital asset market and comes mainly because of the recent decision by FOMC – the Federal Open Market Committee to cut rates by 50 bps. It seems that this unexpected move has rejuvenated the investors, as the total AuM has increased 9% to $9.5 billion.
US Leads Inflows, Europe Sees Mixed Results
The lion’s share of inflows belonged to the United States, with $277 million. Switzerland followed with $63 million, its second-highest weekly inflows of the year. By contrast, the growth was not uniform across regions, with Germany, Sweden, and Canada reporting outflows of $9.5 million, $7.8 million, and $2.3 million, respectively.
Bitcoin Benefits, Ethereum Suffers
Meanwhile, bitcoin emerged as the biggest beneficiary, with inflows amounting to $284 million. Short-bitcoin investment products also witnessed inflows of $5.1 million, suggesting some hedging from investors. On the other hand, Ethereum continued to see outflows-which stood at $29 million for the fifth consecutive week-driven by ongoing redemptions from the Grayscale Trust and a general lack of interest in newly issued ETFs. Solana on its part continued to witness steady inflows of $3.2 million, resilient in spite of volatility.
Kamala Harris Supports Crypto Growth
In a surprising turn of events, US Vice President Kamala Harris threw her support behind the crypto industry, invoking programs to boost investment in new technologies like AI and digital assets. Her pro-crypto comments, given at a recent fundraiser, have brought back a semblance of fresh optimism within the community of digital assets. Strong personas, such as Anthony Scaramucci, have supported her words publicly, further giving more weight to her campaign’s crypto policies.
Market Sentiment Turns Positive
The market sentiment has indeed shifted, as Bitcoin bounces back some 12% from its $57,500 lows to trade at $63,500. This move was also in line with what QCP Capital had projected-a probable surge of 13.8% for Bitcoin. Also, better funding rates and basis yields on major exchanges indicate a better underlying tone. Investment Opportunities Increase
On the back of this, QCP Capital suggests that anyone looking to catch the momentum should turn their eyes to a Principal Protected Sharkfin product. It comes with more than 96% per annum return with no downside risk, maturing on December 27, 2024, with a strike price of $80,000 and a barrier of $100,000, based on a current spot price of $63,500.
It would appear that with the improving macroeconomic factors and investor sentiment, the digital assets market is well-placed to continue growing in a strong fourth quarter.
