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Crypto investment products saw a surge of $1.3 billion in net inflows last week, marking the fifth consecutive week of inflows. This is almost double the previous week’s figure of $747 million, according to CoinShares. The total inflows for the year now stand at $7.3 billion. The strong performance came despite a sharp price decline in the market following President Trump’s tariff announcements. Bitcoin and other cryptocurrencies experienced significant price drops, but demand for crypto investment products remained strong.
Bitcoin-based products received $407 million in inflows last week, while Ethereum-based funds led the way with $793 million, surpassing Bitcoin for the first time this year. The U.S. spot Ethereum ETFs contributed $420 million of those inflows. Ethereum’s price had dropped to around $2,100 after the tariff news, but this sparked significant buying-on-weakness, according to CoinShares’ James Butterfill. Despite Ethereum’s price correction, the asset saw substantial inflows, which were not seen for other altcoins.
In terms of regional inflows, the U.S. dominated, contributing $1 billion in total inflows. Germany, Switzerland, and Canada also saw significant investments, bringing in $61 million, $54 million, and $37 million, respectively. XRP and Solana-based funds also attracted investor interest, with $21 million and $11 million in inflows.
Despite the inflows, the overall assets under management (AUM) in crypto exchange-traded products (ETPs) have decreased to $163 billion, down from $181 billion in January, mainly due to price declines. Weekly trading volumes have remained steady at $20 billion, signaling consistent market activity. Bitcoin’s market capitalization for ETPs now represents 7.1% of its total, reflecting the growing institutional interest in the digital asset despite its recent volatility.
The market had initially reacted negatively to President Trump’s announcement of new tariffs on imported goods, causing a significant drop in cryptocurrency prices. Bitcoin fell below $91,500, while Ethereum dropped by 36%. However, Bitcoin saw a rebound above $100,000 when news broke that the tariffs on Canada and Mexico would be delayed for a month after diplomatic talks. Even as Ethereum’s price has struggled to match Bitcoin’s recovery, its performance has been strong.
Investors have shown continued interest in crypto assets, despite the global uncertainty surrounding tariffs. Ethereum-based funds managed to outperform Bitcoin-based funds in inflows last week, reflecting growing interest from institutional investors. However, Ethereum’s price has remained 46% below its all-time high, which has led to an increase in short positions on the asset. Despite Ethereum’s challenges, its DeFi ecosystem continues to attract attention, with established protocols like Uniswap and Lido remaining prominent.
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