1. The Surge in Bitcoin Institutional Interest
2. Impact Macro-Economic Trends on Bitcoin ETFs
3. Investments in Altcoins

In the past week, Bitcoin investments have soared to $543 million. This surge follows statements from US Federal Reserve Chairman Jerome Powell about a potential interest rate cut in September.

The Surge in Bitcoin Institutional Interest

According to a CoinShares report, inflows into crypto investments amounted to $533 million last week, the highest inflow recorded in five weeks. The week’s trading volume reached $9 billion, although lower than in recent weeks. Per region, the US saw the largest share of inflows at $498 million. Hong Kong followed with $16 million, while Switzerland recorded $14 million. Conversely, Germany and Sweden saw outflows of $8.9 million and $1.2 million, respectively. Weekly inflows from Bitcoin amounted to $543 million. BlackRock iShares Bitcoin Trust (IBIT) contributed significantly to the market's increasing funds. Funds from IBIT and iShares Ethereum Trust amounted to $346 million. Despite new issuers' inflows, Ethereum saw outflows of $35.7 million. Inflows from Ethereum ETF issuers have soared to $3.1 million only a month after receiving approvals in the US. These inflows have been partially offset by outflows from the Grayscale Ethereum Trust of $2.5 billion.

Impact Macro-Economic Trends on Bitcoin ETFs

Earlier this month, Bitcoin’s price fell below expectations to the $59,000 range, influenced by some macroeconomic events, such as the MonkeyPox global health emergency declared by the WHO. Similar to the COVID-19 pandemic, any escalation of this disease might harm monetary systems. Rising inflation, unemployment rates, and the overvaluation of some AI stocks like NVIDIA were among other factors affecting the market. Various indicators can typically inform Central Banks’ decisions to adopt dovish or hawkish monetary policies. However, there are now indications of improvement in the economy following interest rate increases to fight inflation over the past few years. A potential rate cut by September may send massive cash into circulation, which could ignite further adoption in the Bitcoin ETF market.

Investments in Altcoins

Ethereum, a top altcoin in the crypto market, has also seen substantial inflows in recent weeks. On August 6, BlackRock’s iShares Ethereum Trust (ETHA) witnessed a $109.9 million inflow. Nate Geraci, President of The ETF Store, hailed ETHA’s performance as excellent. He noted that its growth thus far came despite the lack of staking returns or options trading. An issuer has yet to receive approval to trade an ETF for Solana in the US, another popular altcoin. Nonetheless, VanEck has expressed confidence in getting its Solana ETF approved, despite recently withdrawing the 19b-4 filing from the CBOE website.

Bitcoin investment volumes have surged significantly amid expectations of a potential interest rate cut by the US Federal Reserve. At the same time, substantial investments are seen in altcoins like Ethereum, despite macroeconomic challenges.