Wall Street Pours $3.55 Billion Into Crypto Funds After Fed Rate Increase

The Federal Reserve lifted interest rates on September 16, and crypto fund inflows surged in the days that followed. Investors added $3.55 billion to crypto funds the next week, the largest weekly total recorded in 2026, according to CoinShares. The Fed raised its benchmark rate by 0.25 percentage points to a 3.75%–4.00% range, a move broadly anticipated by markets. CoinShares said the decision removed a major source of uncertainty, prompting institutional investors to return. "The scale and breadth of the week's demand suggest institutional conviction returned once the policy decision removed a key source of uncertainty, a pattern consistent with buying the fact after weeks of caution," the firm wrote. CoinShares also offers crypto investment products. The inflow reversal followed a difficult period for the sector. On September 15, the CLARITY Act—legislation aimed at establishing federal rules for crypto markets—failed in the Senate by a 49–50 vote. Bitcoin fell below $75,000, and lawmakers are now working on replacement proposals. Bitcoin-focused funds led last week's buying, drawing $2.52 billion. Ethereum funds added $702 million, while Solana and XRP funds took in $193 million and $92.3 million, respectively. US-listed products accounted for $3.43 billion of the total, and US spot Bitcoin ETFs recorded inflows on each of the five trading days. CoinShares also pointed to activity from MicroStrategy, which holds 847,666 BTC. The company bought an additional 1,666 BTC last week, funding part of the $143 million purchase through issuance of new MSTR shares, a move CoinShares noted dilutes existing shareholders. Bitcoin was trading around $84,236, up 1.37% over 24 hours based on BeInCrypto data. Markets are pricing in less than a 40% probability of another rate hike in October. The 10-year US Treasury yield was near 5.28%. Recent US data offered some easing on inflation pressures, with PCE inflation slowing to 3.4% in August. Investors are watching Friday's jobs report for the next major signal.