Crypto Product Inflows Hit $224M, Momentum Slows Amid Fed Policy Uncertainty: CoinShares
Digital asset investment products saw US$224 million in inflows last week, extending a strong seven-week streak to US$11 billion, according to the latest data from asset manager CoinShares. Despite the positive trend, th...
Digital asset investment products saw US$224 million in inflows last week, extending a strong seven-week streak to US$11 billion, according to the latest data from asset manager CoinShares.
Despite the positive trend, the pace of inflows has decelerated amid investor caution surrounding the U.S. Federal Reserve’s next move on interest rates and inflation.
Digital asset inflows slow amid policy uncertainty, Ethereum leads
Last week, digital asset investment products saw inflows totalling US$224M. @ethereum led with inflows of US$296.4M, while @Bitcoin saw outflows of US$56.5M. @SuiNetwork saw minor inflows of $1.1M, while $XRP… pic.twitter.com/6j2Aa2RuFl
The standout performer this week was Ethereum (ETH), which saw US$296.4 million in inflows, marking its seventh consecutive week of positive momentum.
These inflows bring Ethereum’s seven-week total to US$1.5 billion, now accounting for 10.5% of total assets under management (AuM)—a level not seen since the U.S. elections in November 2024.
“This represents the strongest run of inflows into Ethereum since last year’s U.S. election, signaling renewed investor confidence in the network’s long-term value,” said James Butterfill, Head of Research at CoinShares.
Bitcoin Sees Second Week of OutflowsWhile Ethereum gained ground, Bitcoin (BTC) registered its second consecutive week of outflows, totaling US$56.5 million.
Short-Bitcoin investment products also posted a second week of minor outflows, further suggesting that sentiment around Bitcoin remains cautious in the face of macroeconomic uncertainty.
“Policy direction from the Fed continues to create hesitancy,” Butterfill noted. “Many investors are in wait-and-see mode ahead of inflation signals and rate decisions.”
Despite this, the broader regional breakdown shows robust U.S. interest, with US$175 million of the total inflows coming from the U.S. Other regions contributing to the inflows include Germany (US$47.8M), Switzerland (US$15.7M), Canada (US$9.8M), and Australia (US$6.5M).
Altcoins Remain Subdued as Focus Shifts to MajorsActivity in altcoins remained relatively muted. Sui attracted US$1.1 million in minor inflows, while XRP experienced a third consecutive week of outflows, totaling US$6.6 million.
Meanwhile, Hong Kong and Brazil were the only regions to see net outflows, with Hong Kong reversing recent record inflows with US$14.6 million in redemptions.
As markets await more definitive direction from central banks, especially the U.S. Federal Reserve, the digital asset space appears to be consolidating. In the words of Butterfill, “The inflow slowdown reflects a cautious optimism—the capital is there, but conviction hinges on macro clarity.”
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