After weeks of uncertainty, crypto fund inflows have come roaring back. Investors poured $3.4 billion into digital asset investment products last week, according to new research from CoinShares. This remarkable surge marked the third-best week on record for cryptocurrency funds and represents a dramatic turnaround from recent tepid activity.
Just a week earlier, year-to-date inflows stood at a mere $171 million after prolonged periods of outflows. However, in a swift reversal, interest in Bitcoin (BTC), Ethereum (ETH), and altcoin-related funds surged as geopolitical tensions eased.
James Butterfill, Head of Research at CoinShares, described the recovery as “cautiously optimistic.” He noted, “We’re now at $3.5 billion, recovering from close to zero at one point.”
Bitcoin Leads the Crypto Fund Inflows
Unsurprisingly, Bitcoin (BTC) accounted for 93% of the massive crypto fund inflows last week. As Bitcoin prices climbed above $95,000 following U.S. President Donald Trump’s announcement of “reciprocal” tariffs, investor sentiment around digital assets improved notably.
Ethereum (ETH) funds also benefited, attracting $183 million in inflows. Meanwhile, XRP (XRP) products secured an additional $31 million. Other altcoins like Solana (SOL) also enjoyed renewed attention, although specific inflow figures were not disclosed.
While the recent inflows are impressive, Butterfill cautioned that more is needed to fully restore the momentum seen earlier this year. At its peak in 2025, year-to-date inflows had reached $7.4 billion.
Institutions Play It Safe
Interestingly, while crypto fund inflows surged, the bulk of the buying appears to have come from retail investors rather than large institutions. According to Butterfill, although there are signs of increased institutional participation through basis trades—where investors capitalize on price differences between spot and futures markets—the uptick has been modest.
Butterfill explained that although Bitcoin (BTC) prices have recovered strongly since early April, institutions seem to be treading cautiously. Individual investors are currently driving the market recovery, reflecting broader enthusiasm for digital assets.
ETFs and the Future of Crypto Fund Inflows
The approval of spot Bitcoin ETFs in the U.S. was a major catalyst for last year’s historic $29 billion in crypto fund inflows. Companies like BlackRock (NYSE:BLK) and Fidelity (private) led the charge by launching accessible Bitcoin investment products, giving mainstream investors easier entry points into the crypto market.
However, Butterfill pointed out that political developments, such as Trump’s proposed tariffs, introduce new economic uncertainties. These could impact the pace and consistency of future inflows, making it difficult to predict whether last year’s record-setting growth can be matched or exceeded.
A key upcoming event will be the mid-May 13F filings, where institutional investment managers disclose their holdings. These reports will provide critical insights into whether Wall Street giants have been quietly increasing their exposure to digital assets during this rebound.
Conclusion: Crypto Fund Inflows Signal a Turning Point
The $3.4 billion surge in crypto fund inflows marks a crucial turning point for the digital asset sector. With Bitcoin (BTC) leading the charge, Ethereum (ETH) gaining traction, and altcoins like XRP (XRP) drawing new interest, the crypto market appears to be regaining its bullish momentum.
While retail investors are currently spearheading the rally, all eyes are on institutional players to see if they will follow suit. If the upcoming 13F filings reveal significant institutional activity, it could validate the optimism surrounding crypto’s next growth phase.
For now, the resurgence in crypto fund inflows offers a hopeful signal that digital assets are once again capturing the imagination—and the capital—of global investors.
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