Daniel Walker
Institutional crypto investment products managed by major firms like BlackRock, Fidelity, Bitwise, Grayscale, ProShares, and 21Shares saw a return to net inflows, totaling $644 million last week, according to CoinShares data.
This marks a significant turnaround after a five-week losing streak that resulted in $6.4 billion in outflows. James Butterfill, Head of Research at CoinShares, highlighted in a report that inflows were recorded every day last week, breaking a 17-day streak of consecutive outflowsโindicating a decisive shift in market sentiment toward crypto assets.
With Bitcoin rebounding to near $87,000 and gaining 4.6% over the week, the broader GMCI 30 crypto index rose by 5.5%. As a result, total assets under management (AUM) increased by 6.3% from their March 10 low.
Bitcoin Leads the Inflows, While Ethereum Sees Heavy Outflows
The U.S. market played a crucial role in driving net inflows, contributing $632 million of last weekโs total. However, Switzerland and Germany also saw positive flows, adding $15.9 million and $13.9 million, respectively. Meanwhile, Hong Kong, Brazil, and Australia recorded smaller inflows.
In contrast, Sweden and Canada continued their outflow streak, with $10.3 million and $9.1 million exiting the funds.
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Bitcoin investment products dominated inflows, attracting $724 million, ending their five-week slump of $5.4 billion in outflows.
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Short-Bitcoin funds saw $7.1 million in outflows, reinforcing the positive market outlook.
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U.S. spot Bitcoin ETFs alone recorded $744.3 million in inflows, with positive net flows every day last week.
While some altcoins like Solana ($6.4M), Polygon ($0.4M), and Chainlink ($0.2M) saw modest inflows, Ethereum-based funds faced the heaviest losses, with $86 million in net outflows. The U.S. spot Ethereum ETFs were a major contributor, seeing $102.9 million in withdrawals.
Other altcoin-focused funds, including Sui, Polkadot, Tron, and Algorand, also experienced modest outflows.
Macroeconomic Outlook and Market Uncertainty
BRN analyst Valentin Fournier believes the divergence in fund flows will soon stabilize, arguing that Ethereum has greater upside potential due to its sharper correction and an improving macroeconomic environment.
With the April 2 tariff deadline approaching, a White House official hinted that trade restrictions may be more sector-specific than previously expected. While this lower-than-expected tariff pressure has been viewed positively by investors, uncertainty remains regarding trade policies on Mexico and Canada.
Additionally, a dovish stance from the Federal Reserve and potential liquidity injections have contributed to market optimism. However, Fournier warned that Trump’s unpredictability remains a risk factor, as any sudden shift in trade policy could dampen sentiment and reintroduce volatility to the market.
