Crypto Inflows Surge as Bitcoin and Ethereum Rebound
Crypto investment inflows hit $1.2 billion in a week, driven by Bitcoin and Ethereum, signaling renewed investor confidence in digital assets.
Global crypto investment products saw a surge in net inflows, reaching $1.2 billion over the past week. This marks the third consecutive week of positive momentum, as reported by CoinShares. The firm attributes the inflows to rising investor confidence in digital assets, driven by expectations of dovish monetary policies in the U.S. and improving price trends.
According to CoinShares' Head of Research, James Butterfill, this is the strongest weekly performance in the last ten weeks, with total assets under management growing by 6.2%. Most of the inflows were concentrated in Bitcoin investment products, while Ethereum funds also saw a notable turnaround after weeks of decline.
Bitcoin led the surge, drawing $1.1 billion in global inflows, largely due to the approval of BlackRock’s spot Bitcoin ETF by the U.S. SEC. This news has boosted investor optimism, despite a minor drop in overall trading volumes. The majority of these inflows came from U.S.-based funds, showing a significant focus on Bitcoin-related products.
In the U.S. alone, net inflows reached $1.2 billion, of which $1.1 billion came from Bitcoin products. Meanwhile, Switzerland-based crypto funds recorded $84 million in net inflows. However, not all regions benefited from this trend. Germany and Brazil saw net outflows of $21 million and $3 million, respectively.
Short Bitcoin products also saw an uptick, with net inflows of $8.8 million, even as the overall Bitcoin price increased. This indicates diverse investor strategies, with some betting on a future price decline.
One of the week’s key developments was Ethereum’s rebound, breaking a five-week losing streak by attracting $87 million in net inflows globally. This marks the largest weekly gain for Ethereum since August and signals renewed investor confidence in its medium-term potential. U.S.-based spot Ethereum ETFs contributed $85 million of these inflows.
Meanwhile, Solana funds ended their five-week streak of positive inflows, seeing $4.8 million in withdrawals. This may indicate a shift in investor focus back to more established assets like Bitcoin and Ethereum in the short term. Despite Solana's recent growth, the outflow suggests a reallocation of investments as traders prioritize stability.
