Digital Asset Funds See $921M Inflows on CPI Boost

• Digital asset funds saw $921M inflows last week
• Cooling US inflation data boosted investor optimism
• Bitcoin remained the top choice among institutional investors

Digital asset funds recorded a significant inflow of $921 million last week, marking one of the largest weekly gains of the year, according to CoinShares. This surge in inflows comes on the back of lower-than-expected Consumer Price Index (CPI) data in the US, signaling easing inflation pressures.

The lower CPI figure reinforced market expectations that the Federal Reserve may hold off on further interest rate hikes, boosting confidence in riskier assets, including cryptocurrencies. The strong inflows indicate a renewed appetite among institutional investors who see digital assets as a viable hedge or growth vehicle in an uncertain macroeconomic environment.

Bitcoin Leads the Charge

Unsurprisingly, Bitcoin took the lion’s share of the inflows, maintaining its status as the go-to digital asset for institutional exposure. According to the CoinShares report, over 90% of last week’s capital went into Bitcoin-related products. This continued interest in Bitcoin reflects broader market sentiment that views it as a safe digital asset, especially when traditional markets face volatility.

Ethereum and other altcoins saw modest inflows as well, though their performance was overshadowed by Bitcoin’s dominance. The relatively low inflows into altcoins suggest that while investor sentiment is generally bullish, there’s still caution when it comes to riskier assets within the digital asset ecosystem.

Positive Momentum Builds for Q4

With the Fed appearing more dovish and inflation showing signs of cooling, the digital asset market may continue to see bullish momentum heading into the final months of the year. The $921 million inflow signals more than just a one-time spike — it could mark the beginning of a broader institutional re-entry into crypto markets, especially if macroeconomic indicators continue to support risk-on sentiment.

If these conditions hold, Q4 could be pivotal for digital assets, potentially pushing prices higher and restoring confidence across the sector.