Third-Highest Weekly Total Ever Recorded

Last week, investment products focused on digital assets experienced inflows totaling $3.4 billion, marking the highest inflow since mid-December 2024 and the third-largest weekly influx recorded to date. James Butterfill, the Head of Research at CoinShares, noted that this trend seems to stem from increasing concerns over tariffs affecting corporate profits and a significant drop in the value of the US dollar.

Consequently, investors are gravitating towards digital assets, viewing them as a potential safe haven in the face of escalating economic uncertainties.

Bitcoin Sees Major Inflows; Ethereum Bounces Back

The most recent ‘Digital Asset Fund Flows Weekly Report’ highlighted that Bitcoin funds led the influx last week, attracting $3.18 billion and raising the total assets managed in digital assets to $132 billion. This represents the highest level since late February.

Interestingly, short-Bitcoin products also saw $1.6 million in inflows, suggesting some investors anticipated a possible price drop as Bitcoin exceeded $90,000.

Ethereum experienced a reversal in its trend, garnering $183 million in inflows after eight consecutive weeks of outflows. In contrast, Solana faced a decline, with $5.7 million in outflows, pushing its monthly total negative to $13.9 million. Other altcoins had minimal activity, but Sui and XRP gained attention, attracting $20.7 million and $31.6 million, respectively, during the same timeframe.

Multi-asset investment products enjoyed $2.4 million in inflows, while Blockchain equities also gained popularity, receiving $17.4 million, with a significant focus on exchange-traded funds (ETFs) related to Bitcoin mining activities.

Positive Global Market Sentiment

In the regional landscape, US investors were the primary contributors last week, bringing in $3.3 billion in inflows. The positive sentiment was mirrored across the globe, with Germany and Switzerland receiving notable inflows of $51.5 million and $41.4 million, respectively. Australia contributed $4.9 million, and Sweden attracted $4.2 million. Hong Kong saw modest growth with gains of $0.3 million.

However, not all regions experienced growth, as Canada and Brazil saw slight pullbacks in investments, with outflows of $1.6 million and $0.6 million, respectively.