Bitcoin Leads Renewed Momentum For Crypto Funds

Today in crypto, cryptocurrency investment funds regained momentum last week as investor confidence improved, Australia’s crypto industry says more work needs to be done on draft crypto laws, and the market saw a bump as the US and China made progress on a trade deal.

From outflows to inflows: Bitcoin ETPs rally amid surprising economic update

Cryptocurrency investment products regained momentum last week as investor confidence improved following lower-than-expected US inflation data.

Crypto exchange-traded products (ETPs) saw $921 million of inflows last week, more than offsetting the $513 million in outflows from the week before, CoinShares reported Monday.

The main driver behind the bullish trend in the crypto fund market was renewed confidence in further US rate cuts, bolstered by lower-than-expected CPI data released on Friday, according to CoinShares’ head of research, James Butterfill.

The Consumer Price Index surged by 0.3% in September, putting the annual inflation rate at 3%, both lower than expected.

“The ongoing US government shutdown, and the resulting absence of key macroeconomic data, has left investors with little guidance on the direction of US monetary policy,” Butterfill wrote, adding that CPI data helped restore anticipation of the further rate cuts.

Bitcoin (BTC), which had been the main driver of outflows a week earlier, almost fully recovered those losses with $931 million in inflows last week.

Ether (ETH) saw outflows for the first time in five weeks, totaling $169m, with consistent daily outflows throughout the week. “Despite this, 2x leveraged ETPs remain popular,” CoinShares’ Butterfill noted.

Australia’s crypto industry says more work needed on draft laws

Australia’s crypto industry has largely backed the government’s draft crypto legislation released last month to extend finance sector laws to the sector, but has told a Treasury consultation that closed on Friday that the Albanese Government must further clarify the laws.

“The draft legislation, as it stands, leaves some critical questions unanswered,” said Caroline Bowler, the former CEO of crypto exchange BTC Markets. “We support the government’s intent to bring structure to the digital asset sector. But structure must come with clarity.”

Crypto exchange Swyftx said in a consultation submission seen by Cointelegraph that laws would currently allow “a high degree of discretion” by the Treasury and regulators “to impose fundamental changes.”

It added that the draft laws don’t give enough clarity on how local platforms can legally source liquidity from offshore exchanges and was concerned that licensed financial advisers won’t be able to advise on cryptocurrencies.

Bowler added that the laws introduce multiple licenses “without clearly articulating the consumer benefit or the specific risks it seeks to address.”

Crypto.com general manager for Australia, Vakul Talwar, said the government should work to amend and introduce a bill “as quickly as possible,” which he predicted could happen as early as March.

Bessent signals trade deal framework between the US and China 

US Treasury Secretary Scott Bessent said on Sunday that the US and China have made “substantial” headway on a trade deal framework between the two countries, stoking investor hopes that markets will resume their upward trajectory.

The prospective framework means the 100% additional tariffs on China, announced in October, will likely not be implemented, and he said the two countries would also collaborate on security agreements. Bessent added:

“President Trump gave me a great deal of negotiating leverage with the threat of 100% tariffs on November 1, and I believe we have reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese.”

Crypto markets reacted to the news positively, with the price of Bitcoin (BTC) rising by 3.2%, at the time of this writing, as investors and traders saw Bessent’s comments as a signal that the trade war will end soon and markets will rally to new all-time highs.