Cryptocurrency-based investment products closed with inflows for the fifth consecutive week, according to CoinShares’ latest weekly fund flow report. However, the picture isn’t as strong as it seems at first glance. The net weekly inflow was $117.8 million, marking the lowest level in the positive streak. The most striking aspect of the week was the sharp shift in fund flows within days. From Monday to Thursday, a total of $619 million flowed out of investment products. A strong single-day inflow of $737 million on Friday turned the week back to positive. According to CoinShares Head of Research James Butterfill, this movement hints at a significant recovery in risk appetite by the end of the week. Total assets under management remained around $155 billion. While this level didn’t show a major change compared to previous weeks, the narrowing of fund participation was noteworthy. While nine different assets saw inflows the previous week, only four assets recorded positive flows in the latest report.
Bitcoin was by far the strongest area of the week. Bitcoin investment products saw inflows of $192.1 million. Thus, net inflows into Bitcoin funds since the beginning of the year have reached $4.2 billion. However, this latest figure is significantly below the weekly average of approximately $1 billion seen in the previous three weeks. In other words, while Bitcoin remains at the center of investor interest, there is a noticeable slowdown in the pace of inflows.
What about altcoins?
In Ethereum, the picture has reversed. There was an outflow of $81.6 million from Ethereum investment products. This outflow ended a strong inflow streak of over $190 million in Ethereum funds for three weeks. In recent weeks, appetite for Ethereum had been showing signs of recovery; therefore, we can say that the outflow indicates a short-term shift in market sentiment.
The picture remains mixed in altcoins. There was an inflow of $3 million into XRP funds and $3.6 million into multi-asset products. Short Bitcoin products also stood out with an inflow of $6 million. Therefore, we can conclude that while some investors are maintaining their bullish positions in Bitcoin, others are taking positions against downside risks.
There was an outflow of $11.1 million from Solana investment products. Litecoin saw limited outflows of $100,000, and Sui saw limited outflows of $400,000. Chainlink recorded no weekly inflows.
Regional and Funder Distribution
In terms of regional distribution, the US led with inflows of $47.5 million. However, this figure was significantly lower than the $1.1 billion inflow from the previous week. The slowdown in the US was consistent with the risk-aversion sentiment seen in the middle of the week. Germany was one of the strong markets of the week with inflows of $43.8 million. Canada recorded inflows of $16 million. Switzerland, Australia, and France were on the positive side with inflows of $5.2 million, $4 million, and $1.1 million respectively. In contrast, Sweden saw outflows of $1.9 million. On the funder side, iShares stood out with weekly inflows of $131 million. ARK 21Shares products saw inflows of $51 million, while Fidelity recorded inflows of $9 million. Grayscale products experienced outflows of $72 million. ProFunds Group also ended up on the negative side with a $21 million outflow.
