Money is making a strong comeback in crypto funds: $3.300 billion is pouring into Bitcoin and Ethereum.

Cryptocurrency investment funds moved $3.300 billion into Bitcoin and Ethereum last week, signaling renewed institutional interest in the market's most important digital assets.

Cryptocurrency-based investment funds just recorded their largest weekly inflow since August: $3.300 billion flowed into Bitcoin and Ethereum, according to the latest CoinShares report. This surge not only reflects renewed institutional appetite for more established digital assets, but also aligns with market expectations for an upcoming interest rate cut by the Federal Reserve. 

In an environment where investors are seeking alternatives to traditional fixed-income and equity markets, cryptocurrencies are once again positioning themselves as a strategic safe haven. 

Bitcoin and Ethereum lead the return of institutional capital

The magnitude of the weekly inflow into crypto products leaves no room for doubt: institutional capital is making a strong comeback. Bitcoin absorbed $2.850 billionWhile Ethereum raised $450 million, breaking a streak of departures that had lasted more than 8 days. According to the report According to CoinShares' weekly report on crypto fund flows, this movement represents the largest volume of inflows since the August peak, and marks a turning point in the behavior of fund managers.

This upswing in institutional investment in cryptocurrencies coincides with a macroeconomic environment where markets anticipate that The Federal Reserve could initiate rate cuts in the coming days. The expectation of more flexible monetary policy has revived appetite for risky assets, and cryptocurrencies, with their narrative of decentralization and inflation hedging, are once again taking center stage.

Ethereum, which had been showing weakness against Bitcoin, managed to reverse its trend with significant inflows, suggesting a revaluation of its role in the crypto ecosystem. 

The report also notes that multi-asset products and Solana saw minor inflows, while XRP and Cardano continued to see outflows, reinforcing the idea that capital is being concentrated in more established assets.

Trading volume soars and confirms the change in cycle

Following the release of weaker-than-expected macroeconomic data in the United States, flows into cryptocurrencies revived strongly. This movement not only reflects a shift in institutional appetite, but also coincides with a rebound in digital asset prices towards the end of the week, which boosted total assets under management (AuM) to $239.000 billionThis is the highest level since the all-time high in early August, when AuM reached $244.000 billion, according to CoinShares. 

At the regional level, sentiment was broadly positive. United States led with $3.200 billion in inflows, while German recorded $160 million. 

In particular, Friday saw the second largest daily inflow ever recorded for Germany, although this boost was partially offset by outflows of $92 million from Switzerland, CoinShares analysts said. 

In short, this geographic concentration suggests that more regulated markets are leading the recovery, possibly driven by the growing interest in crypto-asset ETFs, which have gained legitimacy and access in recent months. The combination of regulated infrastructure and institutional appetite is redefining the risk profile of cryptocurrencies, bringing them ever closer to the core of the global financial system.

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Fed expectations impact the crypto narrative

Expectations that the U.S. Federal Reserve will cut interest rates have been one of the most prominent drivers in the crypto market recently. 

In a context where monetary policy is beginning to loosen, cryptocurrencies are gaining ground for two main reasons: they offer a profitable alternative to other assets, and they act as a safe haven against the loss of value of traditional money. This combination is building a new narrative that transcends mere speculation, consolidating digital assets as key components within institutional portfolios.

Although the CoinShares report doesn't state it directly, the numbers speak for themselves and suggest we are facing a transformation in the crypto market. The concentration of investments in Bitcoin and Ethereum, the increase in trading volume, and the geographic origin of flows suggest the market is being redesigned. These are no longer isolated or marginal bets, but rather strategic moves based on solid macroeconomic analysis and a more structured regulatory environment.

If the Fed finally begins to lower rates this month, it wouldn't be surprising if institutional adoption of cryptocurrencies accelerated even further. Despite the known volatility in the crypto market, its ability to adjust to economic cycles and attract sophisticated capital positions it as a key player in the financial landscape.