Unfiltered Insights on Crypto Assets
Record-breaking crypto inflows amounting to $3.4 billion, highest since December 2024, reported.
Investors can't seem to get enough of crypto assets as a storm of capital has swept in, fueled by the latest report from CoinShares. This leading European alternative asset manager specializing in digital assets and blockchain reported a whopping $3.4 billion inflow last week.
The influx of cash marked the largest inflows seen since mid-December 2024 and ranked third for biggest weekly inflows in recorded history. In an uncertain macroeconomic climate, crypto assets appear to be a tempting safe haven.
Bitcoins and Ethereum dominate
Bitcoin investment products took the lead in this recent crypto gold rush, with $3.18 billion pouring in. This brought the total assets under management (AuM) for Bitcoin-related products to an impressive $132 billion, a level last seen in February 2025. It seems that Bitcoin continues to capture the attention and investment of both institutional and retail investors, largely due to its appeal as a hedge against traditional market risks and an attractive store of value.
Ethereum also saw a reversal of recent trends, recording a massive $183 million in inflows after eight weeks of outflows. This surge in interest could be tied to broader improvements in network activity and growing optimism around scaling solutions and Layer 2 adoption.
A closer look at market trends
While Solana and other altcoins saw minimal activity, Sui and XRP managed to stand out with inflows of $20.7 million and $31.6 million respectively. Blockchain equities, including funds tied to Bitcoin mining companies, also registered positive flows, adding $17.4 million. This indicates that investors are not only interested in direct digital asset exposure but are also keen to diversify into infrastructure and ancillary sectors within the broader blockchain ecosystem.
The inflows were primarily driven by US investors, who contributed $3.3 billion of the weekly inflow. Germany and Switzerland followed closely, with inflows of $51.5 million and $41.4 million respectively.
Underneath the surface: Enrichment insights
Bitcoin- ETF Inflows and Outflows: US crypto ETFs, particularly those tracking Bitcoin, have hit new cumulative inflow records, reaching $62.9 billion amid a four-week inflow streak as Bitcoin approaches all-time highs. However, in April 2025, Bitcoin ETFs experienced significant outflows, with $751 million withdrawn.- On-Chain Data: There was a net outflow of 12,300 BTC from exchanges on May 10, 2025, suggesting long-term holder accumulation, which is typically a bullish signal for future price appreciation.
Ethereum- Outflow Trend: Ethereum followed Bitcoin with outflows of $37.6 million from digital asset funds in mid-April 2025.- Market Context: Investors are rotating out of riskier crypto assets, especially in response to macroeconomic uncertainty and the Federal Reserve’s hawkish monetary policy.
Solana- Performance in Bullish Markets: While inflow/outflow figures for Solana-focused funds are less prominent, Solana's price has benefited from the broader crypto rally, with the coin trading up 4.2% to $145 as of May 11, 2025.
Key drivers behind the shift
- Macroeconomic Headwinds: The Federal Reserve's hawkish stance, rate hikes, and increased interest in risk-free assets like government bonds and money market funds have contributed to crypto ETF outflows.
- Profit-Taking After All-Time Highs: Bitcoin's surge to $108,000 in late 2024 and subsequent cooling led to profit-taking by investors, causing significant ETF outflows.
- Regulatory Uncertainty: Political shifts, delays in regulatory progress, and uncertainties regarding taxation and custody rules have led institutional investors to hesitate and exit some crypto positions.
- Tech Sector Correlation: Bullish momentum in tech stocks and inflows into tech ETFs are leading indicators for crypto rallies, with institutional investments in tech and innovation-driven sectors coinciding with increased investments in crypto assets.
Final thoughts
The crypto market is in a continuous dance between bullish technical signals and bearish macroeconomic and regulatory factors. Bitcoin and Ethereum are experiencing significant outflows due to profit-taking and risk aversion, while altcoins like Solana are enjoying renewed interest in blockchain innovation. The coming months will reveal whether this year's crypto market trends continue or shift once again.
- The influx of cash into crypto assets, as reported by CoinShares, is driven by technology, with Bitcoin investment products witnessing a significant $3.18 billion inflow, indicating that investors are investing in crypto due to its appeal as a safe haven in an uncertain macroeconomic climate.
- Besides Bitcoin, altcoins like Sui and XRP have also seen inflows, indicating that investors are not only interested in direct digital asset exposure but are also keen to diversify into infrastructure and ancillary sectors within the broader blockchain ecosystem.
- Despite the large inflows into Bitcoin-related products, Bitcoin ETFs experienced significant outflows in April 2025, suggesting that profit-taking after all-time highs and regulatory uncertainty may be causing institutional investors to hesitate and exit some crypto positions.
