Crypto Investment Products Defy Market Volatility, Attract $1.3 Billion in Weekly Inflows

Despite a turbulent week for cryptocurrency prices, marked by significant drops in Bitcoin, Ether, and memecoins, global crypto investment products saw a surge in net inflows, reaching $1.3 billion. This nearly doubles the previous week's inflows and extends a five-week positive streak, demonstrating continued institutional interest in digital assets even amidst market volatility and macroeconomic uncertainty.

Bitcoin Dips, But Inflows Persist: A Sign of Institutional Confidence?

The substantial inflows, totaling $7.3 billion year-to-date, come despite recent price declines triggered by concerns over new U.S. tariffs on imports from Canada, Mexico, and China, as well as retaliatory tariffs from China. Bitcoin, which briefly dipped below $92,000, has since recovered to around $97,817. Ether, however, experienced a steeper decline, falling to around $2,100 before rebounding to $2,647. Memecoins also faced significant losses.

Despite the overall market volatility, Bitcoin-based funds attracted $407 million in net inflows last week, with global investment products now representing 7.1% of Bitcoin's current market capitalization, according to CoinShares Head of Research James Butterfill. U.S. spot Bitcoin ETFs contributed $203.8 million to the overall net inflows.

Ethereum Steals the Show: Outpacing Bitcoin in Inflows

However, Ethereum-based funds were the standout performers, generating net inflows of $793 million last week — outpacing Bitcoin funds for the first time this year. Butterfill attributed this to "significant buying-on-weakness." The U.S. spot Ethereum ETFs registered $420.2 million of those net inflows last week.

Global Reach: U.S. Leads, Europe and Canada Follow

Geographically, the U.S. led with $1 billion in overall net inflows, followed by Germany ($61 million), Switzerland ($54 million), and Canada ($37 million). Total trading volume for crypto investment products remained steady at $20 billion last week, although assets under management declined to $163 billion from their record peak of $181 billion in January, reflecting the price drops across the market.