tl;dr
Digital asset investment products experienced $3.4 billion in inflows last week, the largest since mid-December 2024 and the third-biggest weekly inflow ever. This surge is attributed to concerns over tariffs affecting corporate earnings and the decline of the US dollar, prompting investors to seek ...
Digital asset investment products saw a remarkable $3.4 billion in inflows last week, marking the third-largest weekly inflow ever. This surge is largely attributed to rising tariff concerns and a weakening US dollar, prompting investors to turn to digital assets as potential safe havens amid economic uncertainty.
Bitcoin investment funds led the charge with $3.18 billion in inflows, pushing total assets under management to $132 billion—the highest since late February 2024. Ethereum reversed its eight-week outflow streak by attracting $183 million, while Solana experienced a $5.7 million outflow, contributing to a negative monthly total of $13.9 million. Other altcoins, including Sui and XRP, saw modest inflows of $20.7 million and $31.6 million respectively.
Multi-asset products and blockchain equities also gained investor interest, with inflows of $2.4 million and $17.4 million respectively. Notably, blockchain ETFs tied to Bitcoin mining operations attracted considerable attention, reflecting diversified investment approaches within the digital assets space.
Regionally, US investors accounted for a dominant $3.3 billion of the inflows, sparking positive momentum globally. Germany and Switzerland followed with inflows of $51.5 million and $41.4 million, respectively, while Australia, Sweden, and Hong Kong registered smaller yet positive gains. Conversely, Canada and Brazil saw slight outflows of $1.6 million and $0.6 million respectively.
The combination of tariff-related corporate earnings concerns and a declining US dollar seems to be influencing investor sentiment heavily. This dynamic pushes digital assets to the forefront as alternative investments, highlighting the evolving role these products play in modern portfolios.
Overall, the week's data reflects a robust appetite for digital assets driven by macroeconomic challenges, with Bitcoin reaffirming its position as the flagship cryptocurrency and other altcoins showing selective investor interest. Such trends underscore the importance of monitoring geopolitical and currency fluctuations alongside market developments in the crypto world.