Crypto Investment Products See $1.1 Billion Inflow Last Week

Key Insights

• Digital assets products pulled in $1.1 billion in inflows last week.
• The US accounted for 95% of the inflows, although most regions saw positive flows.
• Bitcoin remains the big driver for investors, accounting for almost $900 million of the inflow, even as Bitcoin saw its highest inflow since November 2024.

Digital assets investment products attracted $1.1 billion in inflows last week, according to data from CoinShares. This marks the biggest week for the asset class since early January, driven by the recent market resurgence.

With Bitcoin climbing above $70,000 and several cryptocurrencies turning green for the first time in 30 days, positive sentiment appears to be returning to the crypto markets.

US Dominates Inflows With Over $1 Billion in Inflows

Interestingly, 95% of the inflows into the crypto investment products came from the US. Investors in the country injected $1.06 billion into digital asset products, enough to bring year-to-date flows to $1.289 billion.

No other country came close during the week, with Germany recording $34 million in inflows, while Canada and Switzerland recorded $7.8 million and $6.9 million, respectively.

However, almost all countries recorded positive inflows, except Sweden and Australia, with inflows of $0.7 million and $0.6 million, respectively. Sweden, in particular, has been on an outflow streak, with a negative year-to-date flow of $158.3 million.

Still, the generally positive trend across multiple regions last week confirms that bearish sentiments around crypto winter might be thawing. This is due mostly to the announcement of a ceasefire in the Iran war last week and to the US consumer price index being better than expected.

The positive outlook is further reflected in trading volume rising 13% week on week to $21 billion in a sign of returning rush appetite. While this is still below the yearly average of $31 billion, the year-to-date inflow is now $2.35 billion.

Bitcoin Continues to Drive Volume

Meanwhile, Bitcoin investment products remain responsible for most of the inflows into digital assets. The flagship cryptocurrency saw $872 million in weekly inflows last week, wiping out negative flow for the month, as YTD flow increased to 1.94 billion.

Ethereum also surprisingly pulled in $196.5 million in inflows for the week, a turnaround for an asset that has mostly seen outflows. Despite this performance, it remains the only asset with negative YTD flows.

Even Solana, despite seeing a $2.5 million outflow this week, still has over $200 million in inflows this year. Other major cap tokens, such as XRP and Chainlink, also recorded inflows last week.

However, the $20.2 million inflows into short Bitcoin last week were the highest since November. This confirms that there are still bearish sentiments in the market, or investors are hedging their positions.

Such moves are not entirely surprising given the volatility Bitcoin has been experiencing. While it has maintained its value above $70,000 since April 8, sentiment remains jittery amid the US’s announcement of a blockade of the Strait of Hormuz.

The post Crypto Investment Products See $1.1 Billion Inflow Last Week appeared first on The Market Periodical.