Global crypto investment products continued their upward momentum last week, registering $785 million in net inflows, marking the fifth consecutive week of growth.
The surge was driven in part by renewed investor confidence in Ethereum, according to data released by digital asset manager CoinShares.
This latest capital influx brings year-to-date inflows to $7.5 billion, fully reversing the nearly $7 billion in outflows recorded during the market downturn earlier this year, which had been triggered by uncertainty surrounding U.S. trade policy under former President Trump.
Ethereum Stands Out Amid Bitcoin Dominance
While Bitcoin-based funds led the charge with $557 million in inflows, it was Ethereum that emerged as the standout. Investment products tied to the second-largest cryptocurrency attracted $205 million, their strongest showing in recent months. Year-to-date, Ethereum inflows now total $575 million, reflecting a clear shift in sentiment.
CoinShares’ Head of Research, James Butterfill, attributed the uptick to positive developments within the Ethereum ecosystem, including the successful rollout of its Pectra upgrade and the appointment of Tomasz Stańczak as co-executive director of the Ethereum Foundation.
However, U.S.-listed Ethereum spot ETFs accounted for only $41.8 million of those inflows, suggesting regional divergence in investor sentiment, according to data compiled by The Block.
Market Trends and Institutional Appetite
Despite Bitcoin prices hovering between $102,000 and $105,000, and a broader 6% dip in the GMCI 30 Index of major cryptocurrencies, total assets under management in digital asset funds rose to $172.9 billion, approaching record highs.
That said, Bitcoin fund flows were down from the previous week’s $887 million. Butterfill cited ongoing hawkish tones from the U.S. Federal Reserve as a potential factor behind the moderated pace. Notably, short-Bitcoin products logged a fourth week of net inflows, totaling $5.8 million, as some investors positioned themselves for potential market corrections.
Global Flow Distribution: U.S., Germany, Hong Kong Lead
Regionally, the U.S. continued to dominate with $681 million in net inflows, followed by Germany with $86.3 million and Hong Kong with $24.2 million, its strongest weekly intake since November 2024.
Conversely, funds based in Sweden, Canada, and Brazil saw net outflows of $16.3 million, $13.5 million, and $3.9 million, respectively, suggesting more cautious sentiment in those markets.
Solana Faces Minor Setback
Among altcoins, Solana-based products were the only ones to see red, posting $0.9 million in outflows. Still, the overall outlook for digital asset investment products remains bullish, with institutional appetite seemingly undeterred by macroeconomic uncertainties.
With capital returning steadily and sentiment improving, particularly around Ethereum, the crypto market appears to be regaining its footing. Whether the trend continues will likely depend on broader economic signals and regulatory developments in key markets.
