Crypto funds hit weekly inflow of $2.7 billion
Crypto investment funds post $2.7 billion in weekly inflows
Cryptocurrency investment funds attracted $2.7 billion in inflows over the past week, marking the eleventh consecutive week of positive performance and pushing year-to-date totals to $17.8 billion.
The United States continues to dominate these regional flows, accounting for nearly all the weekly inflows with $2.65 billion, supported by strong institutional appetite, reports Cryptopolitan.
The U.S. market now boasts $141.5 billion in assets under management (AUM), reflecting substantial investor confidence amid volatile global conditions. In contrast, regions such as Hong Kong, Brazil, and Sweden posted notable outflows, suggesting localized headwinds and varying regulatory climates. Despite these pockets of weakness, inflow strength from the U.S., Switzerland, Germany, and Australia underscores a broader trend of capital concentration in Western markets, particularly driven by institutional allocations into spot Bitcoin ETFs.
Bitcoin and Ethereum Continue to Dominate Crypto Fund Allocations
Bitcoin remains the primary driver of crypto fund inflows, securing 83% of the weekly investment with $2.22 billion added to Bitcoin-focused products. Year-to-date, Bitcoin has captured $14.93 billion in net inflows, reinforcing its position as the asset of choice for risk-adjusted exposure in the crypto space. Ethereum also saw significant demand with $429 million in weekly inflows, contributing to its year-to-date total of $2.86 billion.
This surge reflects growing institutional interest in Ethereum’s role beyond being a simple altcoin, particularly with its recent ETF approvals and expanding DeFi infrastructure. While Bitcoin short products saw minor outflows, other altcoins such as XRP, Solana, and Chainlink enjoyed modest inflows, with XRP notably attracting over $10 million in the past week. These trends point to a diversified but Bitcoin-centric investment landscape, where multi-asset products remain underutilized compared to single-asset funds.
Crypto Inflows Poised to Surpass 2024 Milestones Amid Institutional Demand
The sustained eleven-week inflow streak has propelled half-year investment totals near the entire 2024 benchmark of $17.8 billion, with the current year-to-date figure reaching $17.77 billion. Total assets under management for crypto investment products now stand at $184.4 billion, bolstered by both fresh capital and asset price appreciation. CoinShares attributes this resilience to heightened geopolitical tensions, such as Middle East conflicts and global monetary uncertainty, which have driven institutions to seek portfolio diversification through digital assets.
Despite macroeconomic headwinds, including fluctuating rate expectations and tightening financial conditions, crypto investment funds have continued to attract consistent inflows. As institutional players deepen their involvement, the crypto sector’s positioning as both a hedge and growth asset class appears to be gaining broader acceptance, potentially setting the stage for record-setting flows in the second half of the year.
Recently we wrote that the total value locked (TVL) in crypto protocols has surged to an all-time high of approximately $375 billion, signaling renewed confidence in decentralized finance (DeFi) and tokenized asset sectors.
