Large amounts of cryptocurrency investments flowed in during the last week, marking the third highest weekly entry on record at a staggering $3.4 billion.
Record Weekly Capital Inflow into Crypto Funds
In a historic turn of events, digital asset investment funds recorded the third-largest weekly capital inflow in history, totaling $3.4 billion last week. The United States was the main contributor, accounting for approximately $3.3 billion in net inflows during this record-breaking week.
Europe showed growing interest in cryptocurrencies, with significant investments from Germany and Switzerland. Germany invested $51.5 million, while Switzerland contributed $41.4 million. Other markets like Australia, Sweden, and Hong Kong also showed modest but upward trends in crypto investments.
The rebound in digital asset prices played a significant role in this surge. Bitcoin, the leading cryptocurrency, saw its price surpass $95,000 per unit in the last week of April. Bitcoin-linked investment products captured over $3.18 billion of these inflows.
Ethereum, the second-largest cryptocurrency, also experienced a positive change. Ethereum ended its eight-week streak of net outflows with positive inflows of nearly $183 million. This marked a significant milestone, as Ethereum's year-to-date inflows reached a record $11 billion, signaling strong institutional appetite for ETH.
U.S. institutional investors dominated the activity, particularly through iShares’ digital asset products, reflecting high confidence from professional money managers in regulated investment vehicles. Ethereum's proportion of inflows relative to its overall assets under management (AuM) was significantly higher than Bitcoin’s—29% vs. 11.6%—highlighting its increasing institutional adoption and enthusiasm.
The trend can be explained by the growing perception of cryptocurrencies as emerging safe-haven assets. The decline of the U.S. dollar has encouraged investors to seek alternatives that act as a hedge against inflation and monetary depreciation. The rise in crypto investments can also be attributed to macroeconomic factors such as the weakness of the U.S. dollar and global commercial uncertainties.
Anxiety generated by the impact of tariffs on corporate earnings and volatility in traditional markets has led many institutions and funds to consider including cryptocurrencies as a strategy to diversify and protect their portfolios. The US political and economic context plays a crucial role in the positive crypto investment trend.
Recent regulatory developments, such as clearer SEC guidance on crypto mining and stablecoin issuance in the U.S., alongside strong venture capital interest in crypto infrastructure and compliance sectors, have fostered a more robust and attractive market environment for institutional investors.
XRP-related investment products also started attracting investments, albeit with less magnitude compared to Bitcoin and Ethereum. The rise in crypto investments reflects a combination of recovering asset prices, dominant institutional participation focused on regulated products like ETFs, Ethereum’s rising institutional adoption, and favorable regulatory and fundraising trends in the digital asset sector.
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