Cryptocurrency investment products attracted $882 million in net inflows during the week of May 3–9, according to the latest CoinShares report. While this figure is down from the $2.03 billion recorded the previous week, it marks the fourth consecutive week of positive flows, indicating resilient investor interest.
Since the beginning of the year, cumulative inflows have risen to $6.7 billion - approaching the February peak of $7.3 billion. Assets under management (AUM) across all crypto funds have now expanded to $169.3 billion, reflecting not only inflows but also improving market valuations.
Macroeconomic Factors Drive Allocation Trends
CoinShares analysts attribute the continued growth to a confluence of macroeconomic variables - including global liquidity expansion, persistent stagflationary concerns in the U.S., and increasing recognition of Bitcoin as a reserve asset by several U.S. states. These structural developments are forecasted to fuel further institutional allocation toward digital assets, particularly in regulated fund structures.
Bitcoin Products Lead, Though Momentum Slows
Flows into digital gold products decelerated to $867 million from $1.84 billion the prior week, while Ethereum-based products saw a sharper decline, falling to just $1.5 million from $149.2 million. U.S.-listed spot Bitcoin ETFs accounted for $599.6 million in new capital - a notable dip from the previous $1.81 billion but still indicative of sustained interest.
Altcoin Products Show Selective Strength
Altcoins showed mixed performance. Notably, Sui (SUI) attracted $11.7 million in weekly inflows, bringing its year-to-date total to $84 million - surpassing Solana's $73 million. XRP also recorded modest growth, with $1.4 million in new fund allocations.
These targeted inflows suggest that fund managers are forecasting increased relevance for niche Layer 1 protocols and select high-utility tokens, even amid broader consolidation across major assets.
Short-Term Outlook Supports Continued Inflows
The recent activation of Ethereum's Pectra upgrade, which drove ETH coin prices up 22% on May 8, and Bitcoin's brief move above $105,000 on May 12 - fueled by optimism over a U.S.-China trade deal - have reinforced bullish sentiment.
With monetary conditions expected to remain supportive and institutional frameworks maturing, analysts predict that inflows into digital asset funds could surpass 2021 cycle levels by year-end. As the crypto investment landscape continues to evolve, fund flows will remain a key predictive indicator of market direction and investor conviction.
