Crypto Investment Products See $226M Inflow as Corporate Buyers Return 

Crypto investment products saw a strong recovery last week as the market recorded a whopping $226 million in inflows, according to CoinShares. This marked the ninth day of positive inflows into exchange-traded products (ETPs). The report, written by CoinShares’ Head of Research, James Butterfill, suggested that while investors slowly return to crypto, they remain cautious. 

Altcoins See First Gains in Five Weeks  

The leading crypto asset, Bitcoin, recorded the biggest portion of the inflow, attracting $195 million in inflows. In contrast, short Bitcoin products, which bet that Bitcoin’s price will fall, saw $2.5 million in outflows. Notably, this is the fourth week in a row that investors have pulled back from bearish positions.

For the first time in over a month, investors moved money back into altcoin ETPs, with total inflows reaching $33 million. Before this, investors had withdrawn $1.7 billion from altcoin products over four weeks.

Ethereum (ETH) had the highest inflows among altcoins, gaining $14.5 million. Solana (SOL) followed with $7.8 million, while XRP and Sui recorded $4.8 million and $4 million, respectively. This suggests that while Bitcoin remains the top choice, some investors re-invest money in other major cryptocurrencies.

Most Crypto Investment Products Came From the U.S. and Europe

Most of the crypto investment product’s inflows came from major Western markets. The United States led with $204 million, followed by Switzerland with $14.7 million and Germany with $9.2 million. 

Meanwhile, Hong Kong and Brazil saw minor outflows of $2.1 million and $1.3 million, respectively, showing regional differences in investor sentiment.  

Despite the overall positive trend, ETPs saw $74 million in net outflows on Friday. CoinShares linked this to the release of the personal consumption expenditure (PCE) data which was higher than expected. 

The report suggests that inflation concerns could make the Federal Reserve maintain interest rates high, adding short-term uncertainty to the crypto market.

A Cautious but Growing Optimism Among Crypto Investors 

While the recent investment inflows show growing confidence in the crypto market, Butterfill noted that investors remain careful due to uncertain macroeconomic factors. 

Bitcoin’s total assets under management (AUM) recently fell to $114 billion, the lowest since the U.S. election. This is because crypto trading volume has fallen by a massive 70% after surging after the November 2024 presidential elections. 

This shows how the market is adjusting to inflation risks while expecting economic growth and favorable regulatory policies. 

Overall, CoinShares’ report suggests that investors are returning to digital assets but are not aggressively rushing in. Investors are also focusing on Bitcoin and large-cap altcoins, while concerns about inflation and interest rates continue to influence decisions.