Summary
-
Global Crypto Funds See $226 Million Inflow, Indicating “Cautious Optimism”: Cryptocurrency investment products globally experienced a net inflow of $226 million, marking the second consecutive week of positive flows and suggesting a cautiously optimistic investor sentiment, according to CoinShares analysis.
-
Bitcoin Dominates Inflows, but Altcoins See First Positive Flows in Five Weeks: Bitcoin-focused funds attracted the majority of the investment ($195 million); yet, significantly, altcoin-based investment products also registered their first combined net inflows in five weeks, signaling a potential broadening of investor interest.
Data released by CoinShares indicates that global cryptocurrency investment instruments managed by prominent asset firms—including BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares—accumulated a further $226 million in net inflows during the preceding week.
This latest influx represents the second successive week of net positive flows into these investment vehicles.
According to a report published on Monday by James Butterfill, Head of Research at CoinShares, this trend of consecutive inflows suggests a prevailing investor sentiment characterized as “positive but cautious.”
Butterfill highlighted that “following the largest outflows ever recorded, Exchange Traded Products (ETPs) have now registered inflows for nine consecutive trading sessions.”
He further noted an exception on the preceding Friday, which witnessed minor outflows totaling $74 million, likely in response to the release of US core personal consumption expenditure figures exceeding anticipated levels.
This data potentially signals a continued hawkish stance from the U.S. Federal Reserve, despite recent economic indicators suggesting decelerated growth.
These investment flow patterns are generally consistent with the price movements observed in Bitcoin and the broader cryptocurrency market.
While positive price action was evident for most of the week, Friday saw a reversal that negated prior gains.
Tariff Fears Dampen Market Gains
Market participants also demonstrated ongoing apprehension linked to President Trump’s pronouncements regarding tariffs, particularly in advance of “Liberation Day” on Wednesday.
Ryan Lee, Chief Analyst at Bitget Research, commented on the market dynamics, stating to The Block that “President Trump‘s proposed tariff increases, including a 25% levy on goods from Mexico and Canada effective April 2nd, have reactivated concerns about trade war scenarios.”
Lee elaborated, “Historically, such protectionist policies tend to trigger risk aversion across diverse asset classes, and the cryptocurrency market has not proven immune to this effect.”
He added, “The timing is particularly sensitive given the sustained high correlation between digital assets and traditional financial markets.
Bitcoin’s correlation coefficient of 0.67 with the Nasdaq, for instance, implies that weakness in equity markets could continue to exert downward pressure on cryptocurrency prices.”
Data from The Block’s BTC price page indicates that Bitcoin experienced a decline of approximately 6% over the past week, while the GMCI 30 index, tracking leading cryptocurrencies, registered a more pronounced decrease of 10.6%.
CoinShares’ Butterfill pointed out that these recent price contractions have driven the total assets under management within global Bitcoin investment products to their lowest valuation since the US presidential election of November, reaching $114 billion.
Regional analysis indicates the United States as the primary driver of inflows.
The United States was indeed the dominant geographical source of inflows, accounting for $204 million of the total net inflows observed last week.
Positive inflow momentum was not exclusively confined to the US market, with investment products domiciled in Switzerland and Germany also experiencing net additions of $14.7 million and $9.2 million, respectively, for the second consecutive week.
In contrast, crypto investment products located in Hong Kong and Brazil recorded minor outflows during the same period.
Investment funds focused on Bitcoin remained the primary recipients of capital inflows, totaling $195 million in net inflows for the week.
Furthermore, investors sustained a trend of reducing exposure to short Bitcoin positions, marking the fourth consecutive week of net outflows from these instruments, totaling $2.5 million on a weekly basis.
Altcoins See $33 Million Net Inflows
U.S.-based spot Bitcoin exchange-traded funds (ETFs) accounted for a substantial portion of the overall inflows, specifically $196.4 million in net inflows, as compiled by The Block.
These US Bitcoin ETFs also demonstrated consistently positive daily inflows throughout the week, except Friday.
In a significant market development, global investment products centered on altcoins registered combined net inflows of $33 million—the first net positive flow in five weeks following a prior four-week period of net outflows aggregating $1.7 billion.
Funds linked to Ethereum, Solana, XRP, and Sui emerged as primary beneficiaries, attracting inflows of $14.5 million, $7.8 million, $4.8 million, and $4 million, respectively, during the past week.
Also Read: US congressman Mike Collins transitions from altcoins to meme coins
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
Wallets