The latest weekly crypto asset fund flows report from CoinShares reveals a significant turnaround in sentiment. According to the European digital asset manager, crypto investment products recorded $644 million in inflows last week, effectively ending a five-week streak of outflows.
This recovery follows a prolonged period of bearish sentiment, with the last instance of sustained inflows occurring more than a month ago.
Bitcoin Leads Recovery as Ethereum Sees Largest Outflows
James Butterfill, Head of Research at CoinShares, noted that “total assets under management have risen by 6.3% from their low point on March 10th.” He added that inflows were recorded every single day of the week, marking a clear reversal from the 17 consecutive days of outflows that preceded it.
This trend suggests that investor sentiment may be shifting more positively toward digital assets. Bitcoin played a dominant role in last week’s inflow data, attracting $724 million in new capital and ending its own five-week outflow streak, which had totaled $5.4 billion.
Short Bitcoin products, which profit from BTC price declines, registered outflows for the third consecutive week, totaling $7.1 million, indicating waning bearish expectations among investors.
While Bitcoin led the inflows, the altcoin space showed mixed results. Ethereum experienced the most significant outflows of any digital asset, with $86 million exiting ETH investment products.
Other altcoins, including Sui and Polkadot, also recorded outflows of $1.3 million each, while Tron and Algorand saw losses of $0.95 million and $0.82 million, respectively.
In contrast, Solana emerged as the top altcoin in terms of investor interest, registering $6.4 million in inflows. Polygon and Chainlink followed with modest gains of $0.4 million and $0.2 million.
Regionally, the United States accounted for the majority of inflows ($632 million), while Switzerland, Germany, and Hong Kong contributed smaller but still positive amounts.
Crypto Market Performance
Despite the recorded fund flows last week, this week’s crypto market performance appears to have started on a bullish note. In the early hours of Monday, Bitcoin demonstrated a notable recovery, with the asset rising nearly 5% to reclaim its price above $87,000.
At the time of writing, Bitcoin remains above $87,000, trading at $87,517, marking an approximately 5.1% increase over the past week. However, it is essential to note that the asset is still down by double digits from its all-time high (ATH) above $109,000 recorded in January.
According to data from Coingecko, Bitcoin is down roughly 19.8% from this peak. Interestingly, Bitcoin’s positive Monday was mirrored by Ethereum, which, despite consolidating in a bearish trend, also recorded an uptick.
Over the past day, Ethereum has risen 3.3%, and in the past week, it surged nearly 10%, bringing its value to a current trading price of $2,083.
Featured image created with DALL-E, Chart from TradingView
