According to data provided by CoinShares Head of Research James Butterfill, inflows into crypto investment products last week exceeded $530 million. This figure was recorded as the highest level of the last five weeks. Butterfill stated that investors responded to the hawkish signals given by Federal Reserve Chairman Jerome Powell at the Jackson Hole Symposium.

Jerome Powell’s statements caused investors to develop a clearer view on interest rates. Powell’s comments indicating the possibility of a rate cut in September led to significant activity in the market.

However, Butterfill emphasized that trading volumes were lower than in recent weeks, but still amounted to $9 billion weekly. This shows how big an impact Powell’s statements had on the market.

The USA was the country with the most inflows into crypto investment products this week, with a total inflow of $498 million. At the same time, Hong Kong and Switzerland earned $16 million and $14 million respectively. Germany, on the other hand, remained outside this trend and was the only exception with net outflows since the beginning of the year. Germany experienced a total outflow of $9 million.

Bitcoin stood out as the biggest winner in this process. The $543 million inflow highlighted Bitcoin’s sensitivity to changes in interest rate expectations. Butterfill stated that the majority of Bitcoin inflows occurred on Friday, August 23. This date coincided right after Powell’s comments on the possibility of a rate cut, and therefore Bitcoin appears to have received a large inflow.

On the other hand, Ethereum saw a reverse move last week, with an outflow of $36 million. However, interest in Ethereum has not decreased. The new Ethereum ETFs have attracted great interest from investors, with an inflow of $3.1 billion through these ETFs in the last month.

These inflows were “partially offset by $2.5 billion in outflows from Grayscale Trust,” Butterfill noted. Grayscale Trust’s outflows show the impact of changes among general crypto investment products and are considered an important indicator in understanding which products investors are turning to.

These large inflows into crypto investment products are seen as a response to positive developments in the markets and changes in interest rate expectations. Investors shape their investment decisions by following market trends and monitoring the policies of the Federal Reserve.

This shows how dynamic and rapidly changing the cryptocurrency market is and how sensitive investors are to market movements. Following the future movements of crypto markets seems to be an important strategy for investors.