Digital Asset Inflows Hit $644 Million as Crypto Markets Rebound

Digital asset investment products recorded $644 million in inflows as crypto markets rebounded last week, marking the end of a five-week streak that experienced $5.4 billion in outflows.

Bitcoin (BTC) led the recovery with $724 million in inflows, bringing its year-to-date (YTD) total to $1.3 billion, according to CoinShares’ latest fund flows report. In contrast, Ethereum (ETH) suffered the largest outflows at $86 million, pushing its YTD inflows down to $302 million.

Solana (SOL) attracted $6.4 million, while Polygon and Chainlink recorded more modest inflows of $0.4 million and $0.2 million, respectively. The U.S. dominated inflows with $632 million, followed by Switzerland ($15.9 million), Germany ($13.9 million), and Hong Kong ($1.2 million).

James Butterfill, head of research at CoinShares and author of its fund flows report, told The Defiant that the market rebound was driven by a combination of price drops, shifts in monetary policy, and political developments.

“The price drop has been widely viewed as a buying opportunity—many of our clients have taken advantage of the lower Bitcoin prices, seeing them as an attractive entry point,” Butterfill said. He also pointed to the Federal Reserve’s more dovish stance on inflation and Trump’s apparent softening on tariffs as key factors influencing investor sentiment.

Ethereum Lags

Despite the market rebound, Ethereum is still lagging behind. Butterfill said the gap between BTC and ETH inflows comes down to ongoing uncertainty about Ethereum’s long-term value.

“Ethereum’s price has recovered strongly, but we haven’t seen equivalent inflows,” he explained. “Investors remain concerned about how Layer 2 (L2) fees will translate into a better valuation for Ethereum.”

While recent inflows signal renewed optimism, Butterfill remains cautious about declaring a sustained bull market.

Short Bitcoin positions decline

Meanwhile, short-Bitcoin investment products recorded a third consecutive week of outflows, totaling $7.1 million, bringing YTD outflows to $26 million.

Butterfill said this signals growing confidence in Bitcoin. “Investors are capitulating on their short positions and buying long positions, this after the most recent sell-off is a positive outcome,” he told The Defiant.

Currently, BTC is trading at $88,478, up 4.1% in the past 24 hours, while ETH is changing hands at $2,094, up 5% in the same period, according to CoinGecko.