Fed policy shift drives rise in cryptocurrency fund investments

Traders Union
All News
Crypto News
BTC, ETH lead $1.9B fund inflows

All news

Editors' Picks

Crypto News

Financial News

Market Voices

Billionaires

Companies

Broker News

Regulators News

Daria Chernytska

23.09.2025

Fed policy shift drives rise in cryptocurrency fund investments — Digital asset funds saw $1.9B inflows

The digital asset investment market recorded another strong week, as CoinShares’ latest Digital Asset Fund Flows Weekly Report showed inflows of nearly $1.9 billion. The surge followed the U.S. Federal Reserve’s first interest rate cut of 2025, described by analysts as a “hawkish cut.” Despite initial investor hesitation, demand accelerated toward the end of the week, with more than $740 million entering on Thursday and Friday alone.

According to the report, Bitcoin once again emerged as the primary driver, attracting $977 million in new capital. At the same time, short-Bitcoin products continued to post outflows, losing $3.5 million, with assets under management (AuM) for bearish instruments falling to a multi-year low of just $83 million.

Ethereum also delivered an impressive performance, recording $772 million in inflows. The world’s second-largest cryptocurrency has now reached a record $12.6 billion in year-to-date inflows, pushing its AuM to an unprecedented $40.3 billion. Analysts highlighted this trend as evidence of growing institutional interest in ETH as both a settlement layer and an investment vehicle.

Among altcoins, Solana stood out with $127.3 million in inflows, while XRP drew $69.4 million. More modest but still positive contributions came from Sui, Litecoin, Cardano, and Chainlink.

Global flows and assets under management

Geographically, the United States led with $1.8 billion in inflows, accounting for the lion’s share of weekly activity. Germany followed with $51.6 million, while Switzerland and Brazil added $47.3 million and $9.3 million respectively. Some markets, such as Hong Kong, saw minor outflows of $3.1 million, though overall sentiment remained positive.

Total assets under management for digital asset funds now stand at $40.4 billion, the highest level so far this year. This puts the sector on track to meet or slightly surpass the $48.6 billion inflows recorded in 2024, underscoring renewed confidence in the asset class despite ongoing macroeconomic uncertainty.

CoinShares’ data also revealed strong momentum among leading providers. iShares led with $1.39 billion in inflows, followed by Fidelity and ProShares with notable growth. In contrast, Grayscale and CoinShares’ own XBT Provider registered moderate outflows.

Outlook

Analysts note that the Fed’s monetary policy shift has acted as a catalyst, prompting both retail and institutional investors to reallocate toward digital assets. With Bitcoin and Ethereum capturing the bulk of demand and altcoins steadily gaining ground, experts believe the market could be entering a more sustainable growth phase.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.