Spot bitcoin exchange-traded funds (ETFs) have recorded their highest week since mid-July, bringing in net inflows of $1.2 billion, according to a new CoinShares report.

Bitcoin is currently trading above $62,000, and last week represented the third week in a row of inflows hitting $1.2 billion.

Analysts believe the Federal Reserve’s recent decision to slash interest rates – as well as looming rate cuts on the horizon – may have catalyzed the growth in bitcoin’s value. The Federal Reserve's shift not only spurred investor confidence, but given the upcoming election, there is a possibility that a new administration under either Vice President Kamala Harris or former president Donald Trump may take on a more innovation-focused posture with the industry.

Last week saw BlackRock's Ethereum ETF log $94.9 million in inflows, according to CoinShares, with Fidelity's Ethereum ETF (FETH) raking in $64.9 million.

Despite the world's second-largest cryptocurrency, ether, moving away from a "five-week negative spell," outflows continued to mar the sector. The Grayscale Ethereum Trust, one of the world's largest ether ETFs, recorded $127 million in outflows last week.

Many crypto market analysts are forecasting a bullish outlook for the year for the world's largest cryptocurrency. "Bitcoin prices remain in a consolidation and corrective phase following the strong growth seen earlier this year," said Ruslan Lienkha, chief of markets at YouHodler. "From a technical analysis perspective, [we're in a] bullish flag pattern, often indicating an upward trend's potential continuation. Fundamentally, the outlook also appears favorable for further growth through year-end, as the recent interest rate cut has provided a risk-on signal for traders."