- Asset manager CoinShares reports a decisive shift in sentiment as Bitcoin leads recovery; Ethereum continues to face pressure.
- Global cryptocurrency investment products recorded $644 million in net inflows last week, marking a strong reversal after five consecutive weeks of outflows, according to a new report by digital asset manager CoinShares.
The return to positive flows signals a renewed wave of investor optimism across the digital asset space.
The report, published on Monday, highlights a notable improvement in market sentiment, with net inflows recorded on each trading day of the week. CoinShares Head of Research James Butterfill described the development as a “decisive shift in sentiment” following a prolonged period of weakness.
“Every day last week recorded inflows, following a 17-day consecutive run of outflows — signaling a decisive shift in sentiment toward the asset class,” Butterfill wrote.
Bitcoin Leads the Rebound
Bitcoin-based investment products were the primary driver of the inflows, attracting $724 million in net new capital. This comes after five weeks of outflows totaling $5.4 billion. U.S.-listed spot Bitcoin exchange-traded funds (ETFs) accounted for $744.3 million in inflows alone, according to data compiled by The Block, also registering positive flows every day.
At the same time, short-Bitcoin products recorded $7.1 million in outflows, suggesting a softening bearish outlook among investors.
The positive flows coincided with a 4.6% gain in the price of Bitcoin, which briefly approached the $87,000 level. Meanwhile, the broader GMCI 30 index, which tracks leading digital assets, rose by 5.5%, while total assets under management (AUM) in crypto investment products grew 6.3% from the recent low on March 10.
Regional Breakdown: U.S. Dominates Inflows
U.S. investors were the dominant contributors to last week’s inflows, adding $632 million. Switzerland and Germany also reported positive flows of $15.9 million and $13.9 million, respectively. Other markets, including Hong Kong, Brazil, and Australia, saw modest inflows.
In contrast, Sweden and Canada continued to experience outflows, with net redemptions totaling $10.3 million and $9.1 million, respectively.
Ethereum Suffers Continued Outflows
While overall flows were positive, Ethereum-based investment products continued to struggle, posting $86 million in net outflows. The U.S. accounted for the majority of this with $102.9 million in redemptions from spot Ethereum ETFs, offsetting gains from other regions.
Other altcoins showed mixed performance. Solana-based products attracted $6.4 million, while Polygon and Chainlink products recorded inflows of $0.4 million and $0.2 million, respectively. On the other hand, Sui, Polkadot, Tron, and Algorand funds registered small outflows.
Macroeconomic Outlook and Market Implications
The renewed inflows come amid improving macroeconomic conditions and a more dovish tone from the U.S. Federal Reserve. Analysts suggest that expectations of targeted, sector-specific tariffs, rather than broad-based trade restrictions, have also helped stabilize investor sentiment.
While Bitcoin has reasserted itself as the primary focus of institutional demand, Ethereum and select altcoins may follow suit if broader market conditions continue to improve.
Nevertheless, policy uncertainty and geopolitical developments remain potential headwinds, and markets may remain sensitive to unexpected shifts in global economic policy.
