Last week, the cryptocurrency landscape experienced significant fluctuations, as outlined in the latest Crypto Asset Fund Flows Weekly Report published by CoinShares. The report highlighted a substantial inflow into digital asset investment products, tallying up to $286 million. This marks a remarkable seven-week streak of positive investments, bringing the cumulative total to an impressive $10.9 billion.
Despite the healthy inflows, the overall assets under management (AuM) faced a decline, dropping to $177 billion from a previous peak of $187 billion. This downward trend reflected increasing market volatility influenced by external factors.
Recent U.S. judicial rulings regarding tariff regulations have caused uncertainty, which in turn affected investor confidence around cryptocurrency valuations. Notably, a decision from a New York court deemed certain tariffs unlawful, leading to noticeable price shifts across various crypto assets.
This legal ruling interrupted the initial momentum Bitcoin had gained during the early part of the week, ultimately resulting in minor net outflows.
Shifts in Regional Investment Strategies
The CoinShares report shed light on geographic variations in cryptocurrency investment enthusiasm. The U.S. managed to pull in a total of $199 million in inflows; however, regions such as Germany and Australia also experienced heightened interest, garnering $42.9 million and $21.5 million in investments, respectively.
Hong Kong emerged as a significant player in this recap, achieving a record weekly inflow of $54.8 million since launching its exchange-traded products (ETPs). This indicates growing confidence among regional investors and reinforces Hong Kong’s status as a prominent crypto-friendly jurisdiction.
Contrastingly, Switzerland faced challenges with net outflows of $32.8 million, marking it as one of the few nations experiencing negative flows this year.
This disparity in capital movement among global markets highlights differing investor strategies and risk preferences, often influenced by local regulations and broader economic conditions.
Ethereum Shines While Bitcoin Experiences Challenges
Ethereum came into focus once again as a standout performer, recording inflows of $321 million last week. This marks the coin’s sixth consecutive week of positive contributions, cumulatively reaching $1.19 billion—the highest inflow streak since December 2024.
The ongoing interest in Ethereum illustrates a shift in market sentiment, showcasing the asset’s strength amid recent market fluctuations.
Conversely, XRP faced challenges, registering outflows for a second consecutive week totaling $28.2 million. This trend diverges from Ethereum’s success and may indicate a cautious approach from investors or a phase of profit-taking after a sustained upswing.
Bitcoin, a dominant force in the cryptocurrency market by capitalization, initially saw promising inflows at the beginning of the week. However, the unfavorable court ruling led to a dip in investor trust, resulting in an unfortunate reversal.
By week’s end, Bitcoin recorded slight net outflows of $8 million, marking its first decline after a six-week continuous inflow period accounting for $9.6 billion.
Image caption: A visualization of Bitcoin’s performance amid recent fund flows, created with DALL-E and sourced from TradingView.
