Persistent Capital Influx into Digital Asset Funds, Ethereum a Key Driver in Fifth Straight Week of Gains
Investment vehicles dedicated to digital assets have maintained a positive capital flow for a fifth consecutive period, attracting an additional $785 million in net inflows.
This sustained interest, notably bolstered by Ethereum, has propelled year-to-date contributions to $7.5 billion, according to a report from asset manager CoinShares.
This performance entirely reverses the outflows witnessed between February and March, a period affected by market sensitivity to potential tariff impacts under the Trump administration.
Data from CoinShares indicates that crypto-focused investment products managed by leading firms—including BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares—collectively recorded these substantial global net inflows last week.
A resurgence in positive sentiment surrounding Ethereum has been a significant factor in this trend.
James Butterfill, Head of Research at CoinShares, highlighted in a Monday report that this five-week streak of gains has not only pushed year-to-date inflows beyond the previous $7.2 billion peak seen in early February but also “fully recovers the near $7 billion of outflows experienced during the February-March price correction.”
Despite a market environment where Bitcoin’s price consolidated within the $102,000 to $105,000 range, Ether experienced an approximate 3% decline, and the GMCI 30 index of prominent cryptocurrencies decreased by 6%, the total assets under management (AUM) across these funds reached $172.9 billion, approaching historic highs.
Ethereum’s Resurgent Appeal and Bitcoin’s Moderated Inflows
While funds centered on Bitcoin continued to command the largest portion of net inflows last week, with $557 million, Butterfill identified Ethereum investment products as a “standout performer.”
These products attracted an additional $205 million, bringing their cumulative year-to-date inflows to $575 million, signaling a recovering investor outlook for the second-largest cryptocurrency.
Butterfill suggests that the renewed investor confidence in Ethereum can be attributed to its recent successful Pectra upgrade and the appointment of Tomasz Stańczak as its new co-executive director.
However, data compiled by The Block indicates that U.S.-domiciled spot Ethereum exchange-traded funds (ETFs) contributed only $41.8 million to this total, highlighting differing regional sentiments.
Inflows into Bitcoin-related funds, though substantial, represented a reduction from the $887 million recorded the week prior.
Butterfill posits that this moderation is likely due to sustained restrictive signals from the U.S. Federal Reserve.
Furthermore, investment products designed to short Bitcoin registered inflows for the fourth successive week, amounting to $5.8 million, a trend Butterfill interprets as investors hedging positions following recent price appreciations.
Regional Flow Dynamics and Solana’s Outlier Status
Geographically, the United States, Germany, and Hong Kong were the primary beneficiaries of overall net inflows, with capital infusions of $681 million, $86.3 million, and $24.2 million, respectively.
Notably, Hong Kong’s intake marked its most significant inflow since November 2024.
In contrast, digital asset investment products in Sweden, Canada, and Brazil experienced net capital withdrawals of $16.3 million, $13.5 million, and $3.9 million, respectively.
Among the major digital assets, Solana-based investment products were the only category to observe net outflows last week, although the sum was a relatively minor $0.9 million.
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