Crypto Investment Products Reverse 5-Week Outflow Streak, Adding $644 Million in Assets

Cryptocurrency investment products recorded $644 million in inflows last week, a reversal after five consecutive weeks of shedding assets. 

Inflows to Bitcoin exchange-traded funds largely led the shift, followed by flows to Solana, Polygon and Chainlink investment products, CoinShares Head of Research James Butterfill said Monday in a report. Meanwhile, total assets under management for crypto investment products rose 6.3% from their low point on March 10, according to CoinShares’ data. 

“Every day last week recorded inflows… signaling a decisive shift in sentiment toward the asset class,” Butterfill said in the report. 

Cryptocurrency funds have recorded massive outflows over the past few weeks as geopolitical and economic uncertainties drive investors away from risk-on assets. In the U.S., spot Bitcoin ETFs logged outflows totaling $5.4 billion over a period of five weeks ending on March 21—the longest streak of weekly outflows for the funds since they clinched approval to launch in January 2024.

However, investor sentiment rose last week as Federal Reserve Chairman Jerome Powell soothed jittery markets after the U.S. central bank kept interest rates unchanged. Investors' cautious optimism has fueled inflows to digital assets investment products.  

Bitcoin ETFs attracted $724 million last week, largely driving the recovery, according to CoinShares' report. Solana-based investment products brought in $6.4 million in inflows, while Polygon and Chainlink recorded marginal inflows of $400,000 and $200,000, respectively, the data shows.

Conversely, Ethereum saw the heaviest loss in investments last week, logging $86 million in outflows. Altcoins such as Sui Polkadot, Tron and Algorand also saw exits of funds during the same period. 

The majority of flows came from the U.S., where $632 million flowed into digital asset investment vehicles. Investors in Switzerland, Germany and Hong Kong also poured funds into cryptocurrencies, adding $15.9 million, $13.9 million and $1. 2 million to the products, respectively.

Edited by James Rubin