Invesco files for new tokenised money market fund targeting stablecoin issuers
Bitcoin has fallen to a year-to-date low of $58,000, and is now trading more than 50% below its all-time high of $126,300. Inflation concerns, heavy ETF outflows, and broader risk-off sentiment weighed on the crypto markets throughout the week.
Spot Bitcoin ETFs recorded approximately $1.79 billion in net outflows last week, the second-largest weekly outflow since the funds launched in January 2024, says Simon Peters, cryptoasset market analyst at multi-asset investment platform eToro. Friday alone accounted for $444.5 million in outflows, extending the daily outflow streak to seven consecutive sessions. The funds also posted their seventh straight week of net outflows, the longest weekly outflow streak on record for spot Bitcoin ETFs.
The US PCE report largely met analyst expectations, but still showed that inflation has accelerated to 4.1% year-over-year, its highest level in three years. The data reinforced concerns that the Federal Reserve may need to keep monetary policy restrictive for longer, with further rate hikes still a possibility.
Against that backdrop, traders and investors will be closely monitoring comments from Federal Reserve Chairman Kevin Warsh on Wednesday, when he is due to participate in a panel discussion at the ECB Forum on Central Banking.
Attention will then turn to Thursday’s labour market data, including the latest non-farm payrolls report and unemployment rate.
With Bitcoin sitting near key support in the $58,000 to $60,000 zone, investors and traders will be watching to see whether ETF flows begin to stabilize and whether incoming economic data shifts expectations for Federal Reserve policy in the weeks ahead. Any improvement on either front could encourage buyers to re-enter the market.
BIGGEST MOVERS
$AAVE was one of the strongest performers in the crypto market last week, rising 20% and extending the rally that has lifted the token in recent weeks. The move has been driven by increased activity and renewed investor optimism following comments from founder Stani Kulechov about a potential overhaul of Aave’s tokenomics model.
Discover more here: https://www.etoro.com/discover/markets/cryptocurrencies/market-movers
EYE-CATCHING STORIES
Invesco files for new tokenised money market fund targeting stablecoin issuers
US asset management giant Invesco, which has $2.45 trillion in assets under management, filed with the SEC last week to launch the Invesco Stablecoin Reserves Onchain Fund. The tokenised money market fund is designed to hold the cash and short-term Treasury assets that back stablecoins and comply with the reserve requirements of the GENIUS Act.
The fund’s shares will be recorded on public blockchains through a blockchain-integrated recordkeeping system operated by Superstate Services.
As the stablecoin industry continues to expand, issuers are increasingly seeking approved reserve assets, daily liquidity and operational infrastructure that can integrate with blockchain-based finance.
For asset managers, the stablecoin industry appears to represent a new market opportunity. Rather than competing with existing stablecoin issuers by launching their own, firms are increasingly focusing on managing the cash and reserve assets that underpin stablecoins and collecting fees for providing that service.
With the filing, Invesco joins other Wall Street institutions such as BlackRock and State Street in providing reserve-management solutions for stablecoin issuers.
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