Log In

Significant Crypto Inflows Reach $2.7B in One Week

Published 1 day ago3 minute read
Significant Crypto Inflows Reach $2.7B in One Week

Institutional digital asset investment vehicles have demonstrated robust and sustained growth, recording over $16 billion in inflows over an eleven-week period. According to the latest Digital Asset Fund Flows Weekly Report by crypto asset management firm CoinShares, total inflows into institutional crypto investment products reached $2.7 billion last week alone, marking the eleventh consecutive week of positive flows and bringing the cumulative total to $16.9 billion for the year-to-date. This strong performance in the first half of 2025 closely mirrors that of the previous year, with H1 inflows nearing the $18.3 billion recorded by the end of June 2024. This resilient investor demand is attributed by CoinShares' head of research, James Butterfill, to a combination of factors, including heightened geopolitical volatility and the prevailing uncertainty surrounding global monetary policy and interest rate cuts, driving investors to consider digital assets for diversified strategies.

Regionally, the United States emerged as the primary driver of these inflows, contributing a significant $2.65 billion to the global total last week. Switzerland and Germany also saw positive contributions, with inflows of $23 million and $19.8 million respectively. Conversely, some regions experienced outflows, including Canada with $13.6 million, Hong Kong with $2.3 million (and notably $132 million in June alone), and Brazil with $2.4 million. The outflows in Hong Kong occurred despite earlier strong inflow activity during regional price rallies, indicating a shifting sentiment in that market.

Bitcoin (BTC) continued to dominate institutional interest, capturing the lion's share of inflows last week. The flagship cryptocurrency attracted $2.2 billion, accounting for approximately 83% of the total inflows into digital asset products. This strong bullish sentiment towards Bitcoin is further underscored by the fact that short-Bitcoin investment products experienced outflows, totaling $2.9 million last week and bringing their year-to-date outflows to $12 million. This clear inverse movement highlights a broad market preference for long exposure to Bitcoin, reflecting positive sentiment regarding its current price structure and future potential.

Ethereum (ETH) also demonstrated significant strength, maintaining its inflow streak with $429 million in institutional product inflows last week. Year-to-date, Ethereum-focused funds have amassed $2.9 billion in net inflows, solidifying its position as the second-most favored digital asset among institutional investors. This surge in ETH inflows comes amid continued growth and activity within Layer 2 networks, which contribute to the platform's expanding utility and appeal. In contrast, Solana (SOL) has lagged behind in institutional investor interest, recording only $91 million in inflows for the year so far. While Solana has gained traction in areas like decentralized finance (DeFi) and non-fungible token (NFT) issuance, it appears to be attracting more speculative capital rather than large-scale institutional flows at this stage, suggesting that institutional confidence in altcoins remains largely tied to more established networks like Ethereum.

The continued demand from institutional players, including major entities such as BlackRock, Fidelity, Grayscale, Bitwise, ProShares, and 21Shares, underscores the growing acceptance and integration of crypto-related products into traditional investment portfolios. These firms have consistently seen increasing demand for their various offerings, indicating a maturing market where digital assets are increasingly viewed as a legitimate component of a diversified investment strategy, especially in response to macroeconomic uncertainties.

From Zeal News Studio(Terms and Conditions)
Loading...
Loading...
Loading...

You may also like...