Investors Pour $224M Into Crypto Funds, But Bitcoin’s Outflows Raise Eyebrows

Trader From HellCrypto News18 hours ago6 Views


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Crypto asset investment products saw continued capital inflows last week, adding $224 million in net new money, according to the latest report from CoinShares. This marks the seventh consecutive week of positive flows, bringing the total to $11 billion during this period.

Despite the headline inflows, investor sentiment appeared more cautious than in previous weeks. CoinShares Head of Research James Butterfill noted that uncertainty around the US Federal Reserve’s next move on interest rates has introduced hesitation among crypto investors.

With no clear signal yet on whether the Fed will pivot or hold rates steady, some capital remains sidelined, waiting for stronger macroeconomic cues.

Ethereum Dominates Inflows While Bitcoin Sees Outflows

Ethereum emerged as the week’s top performer in terms of fund flows, attracting $296.4 million in new investments. That brings its seven-week inflow total to approximately $1.5 billion, representing around 10.5% of total assets under management (AUM) across Ethereum-linked investment products.

CoinShares described this as the most sustained period of inflows into Ethereum since the 2020 US election, suggesting a resurgence in investor confidence in the asset.

Crypto asset fund flows.
Crypto asset fund flows. | Source: CoinShares

In contrast, Bitcoin saw net outflows for the second week in a row, losing $56.5 million. The outflows were mirrored in short-Bitcoin products, which also recorded a second consecutive week of redemptions.

This aligns with the broader theme of caution in the market, particularly with Bitcoin facing difficulty holding above the $105,000 level in recent sessions. The outflows may reflect traders rotating out of Bitcoin in favor of Ethereum or simply reducing overall exposure due to macro concerns.

Regional Activity and Altcoin Performance

The United States led all regions in terms of net inflows, contributing $175 million to the total. Other notable contributors included Germany ($47.8 million), Switzerland ($15.7 million), Canada ($9.8 million), and Australia ($6.5 million).

Crypto asset fund flows by region.
Crypto asset fund flows by region. | Source: CoinShares

On the flip side, Brazil and Hong Kong registered outflows of $9.2 million and $14.6 million, respectively. The Hong Kong data is particularly notable, marking an end to the recent streak of record inflows driven by its newly launched spot crypto ETFs.

Activity in the altcoin segment remained relatively muted. Sui logged a modest $1.1 million in inflows, while XRP continued its downward trend with $6.6 million in outflows, its third consecutive week in the red.

While these movements are relatively small in dollar terms, they continue to reflect a general lack of conviction in altcoin markets during this consolidation phase.

The global crypto market cap valuation. | Source: TradingView.com
The global digital currency market cap valuation. | Source: TradingView.com

Featured image created with DALL-E, Chart from TradingView

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