Crypto markets experienced notable shifts last week, as revealed by CoinShares in its latest Crypto Asset Fund Flows Weekly Report. According to the recent publication, digital asset investment products witnessed inflows totaling $286 million, marking seven consecutive weeks of positive investment that cumulatively reached $10.9 billion.
Despite the continued momentum in capital inflows, overall assets under management (AuM) took a downward turn, dropping to $177 billion from the previously recorded high of $187 billion.
The decline in AuM coincided with heightened market volatility, largely attributed to uncertainties around US tariff policies. Mid-week developments in the United States saw the New York court’s decision declaring certain US tariffs illegal, which subsequently disrupted investor confidence and caused fluctuations in crypto asset prices.
This court ruling effectively reversed the strong inflow pattern Bitcoin had initially displayed earlier in the week, culminating in minor net outflows.
Regional Shift in Crypto Investments
The CoinShares report highlighted a noticeable geographic shift in investor sentiment. Although the United States continued to attract significant investment inflows totaling $199 million, other regions experienced increased investor attention.
Germany and Australia recorded inflows of $42.9 million and $21.5 million, respectively. However, it was Hong Kong that notably stood out, achieving its highest weekly inflows since the inception of its exchange-traded products (ETPs), totaling $54.8 million.
This milestone underscores growing regional investor confidence and Hong Kong’s strengthening position as a crypto-friendly jurisdiction.
Conversely, Switzerland diverged from this positive trend, experiencing net outflows of $32.8 million. These withdrawals placed Switzerland among the few countries registering a negative year-to-date flow.
The contrasting inflow and outflow dynamics among these global markets suggest diverging investor strategies and risk appetites influenced by both local regulatory frameworks and broader economic conditions.
Ethereum Outshines, Bitcoin Faces Setback
Ethereum emerged as the standout asset in the report, recording $321 million in inflows last week. This marked Ethereum’s sixth consecutive week of positive investment, cumulatively amounting to $1.19 billion, representing its strongest inflow streak since December 2024.
The consistent and increasing investor interest in Ethereum indicates improved market sentiment and highlights the asset’s resilience amid recent volatility.
In stark contrast, XRP experienced its second consecutive week of outflows, totaling $28.2 million. This divergence from Ethereum’s trajectory could reflect ongoing investor caution or profit-taking after a prolonged period of positive performance for XRP.
Bitcoin, the leading cryptocurrency by market capitalization, initially attracted strong inflows at the week’s outset. However, the court ruling against US tariffs impacted investor sentiment, prompting a reversal mid-week.
By the week’s end, Bitcoin recorded minor net outflows amounting to $8 million, marking the first outflow after six weeks of consecutive positive investment totaling $9.6 billion.
Featured image created with DALL-E, Chart from TradingView
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