Massive $3.4 Billion Inflows into Bitcoin and Ethereum ETFs Spark Optimism

In brief

• Investors poured $3.4 billion into digital asset investment products last week, according to CoinShares research.
• A week prior, year-to-date inflows were just $171 million after a prolonged period of outflows.
• Bitcoin represented a staggering 93% of last week’s inflows.

Investors have shown renewed enthusiasm, injecting $3.4 billion into digital asset investment products last week, seizing opportunities in spot Bitcoin exchange-traded funds (ETFs) as market tensions eased. This significant influx, highlighted in a report by CoinShares, marks one of the best weeks in the history of crypto funds, which also include popular altcoins like Ethereum, Solana, and XRP. Just a week earlier, inflows year-to-date had languished at a mere $171 million.

CoinShares Head of Research, James Butterfill, expressed cautious optimism, stating, “We’re now at $3.5 billion, recovering from close to zero at one point.” This resurgence is particularly notable as Bitcoin surpassed $95,000 for the first time since the U.S. President Donald Trump introduced tariffs, with 93% of last week's inflows attributed to Bitcoin, while Ethereum and XRP garnered $183 million and $31 million, respectively.

Despite this rebound, Butterfill cautioned that the total year-to-date inflows peaked at $7.4 billion earlier this year, indicating that further robust inflows are necessary to restore adoption trends. He noted an increase in institutional participation through basis trading, which capitalizes on price differentials between spot and futures markets. However, this growth has been modest, with institutions seemingly taking a back seat as individual investors lead the charge.

As Bitcoin trades well above its levels from early April—prior to Trump’s tariff threats—Butterfill suggested that the focus has shifted to individual investors making allocations. Last year, crypto funds attracted a remarkable $29 billion, largely driven by the approval of spot Bitcoin ETFs in the U.S. However, with ongoing uncertainties stemming from tariffs, it remains to be seen whether last year's momentum can continue.

Investors will gain clearer insights into Wall Street's positioning when institutional investment managers disclose their activities in the upcoming 13F filings in mid-May, shedding light on their recent investment strategies and holdings.

Edited by James Rubin