Cryptocurrency investment products once again took center stage in the market last week with strong capital inflows. According to CoinShares data, global crypto asset investment products saw net inflows of $857.9 million. This extended the positive streak in funds to a sixth week, with weekly inflows reaching their highest level since April 24th.
US-based products and Bitcoin funds were particularly decisive in the acceleration of capital inflows. Market sentiment was supported by optimism generated by progress on crypto regulations in the US. CoinShares Head of Research James Butterfill pointed to developments around the CLARITY Act and the consensus text prepared regarding stablecoin yields as key factors in this recovery.
Bitcoin's rise above $80,000 during the week was also a key factor supporting fund flows. With this move, the leading cryptocurrency reached its highest level since the correction in February, while institutional risk appetite was seen to have revived. Total assets under management also rose to $160 billion.
Bitcoin funds lead by a wide margin
Looking at assets, the strongest inflow of the week occurred in Bitcoin products. Bitcoin-focused investment products attracted a net inflow of $706.1 million, bringing the total inflow since the beginning of the year to $4.9 billion. This figure shows that the majority of the weekly total inflow was concentrated on Bitcoin.
Conversely, a different picture emerged in short Bitcoin products. Short Bitcoin products saw an outflow of $14.4 million. According to CoinShares, this was the largest weekly outflow in this category this year, indicating that some hedging positions were being closed as bullish expectations strengthened.
Ethereum funds also recovered after the weak performance of the previous week. Ethereum investment products recorded an inflow of $77.1 million last week, following an outflow of $81.6 million seen the previous week. This turnaround revealed that investors are beginning to show renewed interest in major assets other than Bitcoin.
On the altcoin side, Solana and XRP stood out. Solana products received inflows of $47.6 million, while XRP products received $39.6 million. The significant acceleration of movement in these two assets compared to recent weeks shows that market participation is not limited to Bitcoin alone. While Chainlink, Sui, and Litecoin saw more limited inflows, multi-asset products experienced outflows of $5.5 million.
US products dominated the week
In terms of regional distribution, US-based investment products were clearly ahead. Cryptocurrency investment instruments listed in the US saw net inflows of $776.6 million last week. This figure indicates a very strong recovery compared to the $47.5 million inflow in the previous week.
There was a more measured but positive outlook on the European side. German-based products saw inflows of $50.6 million, Swiss-based products $21.1 million, and Dutch-based products $5 million. This picture showed that the recovery in the US was also supported by Europe.
Among fund providers, BlackRock's iShares products led the week by a wide margin. iShares saw inflows of $733 million, while inflows since the beginning of the year reached $4.58 billion. ARK 21Shares recorded weekly inflows of $52 million, and Bitwise recorded $41 million. Grayscale, however, deviated from the general trend. The company's products saw outflows of $63 million last week, bringing the total year-to-date outflow to $636 million. While Fidelity products saw weekly inflows of $31 million, they also recorded a net outflow of $1.05 billion year-to-date.
