The past week witnessed an unprecedented infusion of $3.3 billion into cryptocurrency-based investment products
marking a historic high of $10.8 billion in total inflow since the beginning of the year. Notably, Bitcoin (BTC)
$
0.000039was the primary recipient of these funds, attracting $2.9 billion, thereby constituting a quarter of the year’s total inflow alone. Meanwhile, Ethereum (ETH)
$
2,529concluded its fifth consecutive week of gains with an inflow of $326 million, hinting at recovering investor sentiment. In contrast, Ripple
$
2‘s XRP ended an 80-week continuous influx streak with an outflow of $37.2 million.
Dominance of the U.S. Remains Strong
Moody’s downgraded U.S.’s credit outlook and rising bond yields propelled investors towards cryptocurrency-based investment products as a safe haven. Out of the weekly total, a staggering $3.2 billion originated from the U.S., while Germany, Hong Kong, and Australia contributed $41.5 million, $33.3 million, and $10.9 million respectively. Swiss fund managers capitalized on strengthening prices, resulting in an outflow of $16.6 million. The capital’s swift reallocation from economically stressed regions to areas with sustained risk appetite was evident.
Altcoin Market Capital Flow
During the week, the assets under management briefly reached a historical peak of $187.5 billion. There was also activity among investors aiming to profit from potential downturns, with short-Bitcoin products seeing inflows of $12.7 million, marking the highest weekly volume since December 2024. The presence of such strong flows and opposing positions concurrently in the market suggests that both upward and downward market expectations are operating simultaneously.
Current Status on the Altcoin Front
After a long period in the shadows, Ethereum, the largestaltcoin, regained momentum amid positive expectations regarding spot ETF applications related to staking. A consistent five-week capital inflow, combined with network upgrades and increased institutional interest, improved perceptions of the “second largest”cryptocurrency. The current scenario indicates that investors are not looking to commit solely to Bitcoin in their portfolios.
On the flip side, XRP faced a $37.2 million outflow, disrupting an eight-quarter-long streak of continuous inflows and marking the harshest weekly loss to date. While market experts perceive this as “profit-locking,” some analysts argue that the delay in approval of pending spot ETFs has weakened interest.
Solana
$
172(SOL), Sui (SUI), Cardano
$
0.749618(ADA), and Chainlink
$
0.000028(LINK) observed inflows of $4.3 million, $2.9 million, $600,000, and $900,000, respectively.
The emerging scenario indicates that although there is still capital flowing into the altcoin market, the direction of these flows is no longer progressing in the same corridor.