Record-Breaking Investment in Digital Asset Funds: Over $3.4 Billion Flooding In - Third-Highest Weekly Inflow Ever
Digital asset investment products are on fire, seeing a whopping $3.4 billion inflow last week – the highest since mid-December 2024 and the third-biggest weekly inflow ever recorded. The surprising surge is being attributed to mounting fears of tariffs and the depreciating US dollar, pushing investors to seek digital assets as a potential safe haven amid economic instability.
Bitcoin led the week's investment activities, attracting a massive $3.18 billion, boosting total digital asset assets under management to an impressive $132 billion – the highest since late February. Interestingly, short-Bitcoin products also witnessed inflows worth $1.6 million, indicating some speculators expecting a potential drawdown as Bitcoin's price soared above $90,000.
Ethereum finally reversed its downtrend, recording $183 million in inflows after eight consecutive weeks of outflows. Meanwhile, Solana faced an investor pullback, with $5.7 million in outflows, pushing its monthly total into negative territory at $13.9 million. Other altcoins like Sui, XRP, and various others observed minimal action during the same period. Multi-asset investment products and Blockchain equities also gained traction, attracting $2.4 million and $17.4 million, respectively, with a particular focus on Bitcoin-mining ETFs.
The investment action was mainly driven by US investors, which contributed a significant $3.3 billion in inflows, followed by Germany, Switzerland, Australia, Sweden, and Hong Kong. However, Canada and Brazil recorded minor investor pullbacks.
Institutional interest in digital assets shows no signs of slowing down, with 85% of institutions planning to expand their digital asset holdings, aiming to allocate over 5% of their AUM to cryptocurrencies. Regulated products like ETFs/ETPs are the preferred choice over direct coin ownership among 60% of institutions [5]. The landscape also reflects an increasing trend towards altcoin diversification, decentralized finance (DeFi), tokenized real-world assets, and multi-asset strategies. These developments suggest that the digital asset market is maturing, with regulated products, altcoin diversification, and RWA tokenization dominating institutional strategies.
- The influx of investments into digital assets has reached a significant level, with a $3.4 billion flow last week – the highest since December 2024 and the third-biggest weekly inflow ever recorded.
- Bitcoin, the leading cryptocurrency, attracted a massive $3.18 billion, boosting digital asset assets under management to a historic $132 billion.
- Interestingly, even short-Bitcoin products saw inflows worth $1.6 million, indicating that some speculators expect a potential drawdown as Bitcoin's price surpassed $90,000.
- Ethereum ended its eight-week downtrend, attracting $183 million, while altcoins like Sui, XRP, and others observed minimal activity during the same period.
- In the world of finance, institutional interest in digital assets is surging, with 85% of institutions planning to expand their digital asset holdings, aiming to allocate over 5% of their AUM to cryptocurrencies.
- The preference among institutions is leaning towards regulated products like ETFs/ETPs, with 60% opting for these over direct coin ownership.
- Besides Bitcoin, other areas of interest include altcoin diversification, decentralized finance (DeFi), tokenized real-world assets, and multi-asset strategies, indicating that the digital asset market is maturing.
