Cryptocurrency investment regains ground: $644 million inflows break weekly outflow streak

Cryptocurrency investment flows are back in the black after five weeks of outflows, with a total of $644 million in inflows, led by Bitcoin, according to CoinShares' latest weekly report.

After a period of uncertainty that lasted five consecutive weeks, investment products based on digital assets have experienced a notable reversal. 

Last week, global cryptocurrency funds recorded net inflows of $644 million, breaking a streak of outflows that had reached a total of $6.400 billion. This positive turnaround, revealed in CoinShares' weekly report, reflects a decisive shift in investor sentiment toward cryptocurrencies. 

According to the report, Bitcoin has been the main driver of this recovery, attracting $724 million in revenue and consolidating its market leadership. However, Ethereum, despite its importance in the crypto ecosystem, faces a different outlook, with significant outflows that call into question its short-term position.

This shift in investment flows not only reflects the characteristic volatility of cryptocurrency markets, but also the sector's ability to adapt to changing macroeconomic and geopolitical conditions. As investors grow more optimistic, the market appears to be entering a new phase of growth and stability.

Bitcoin leads the recovery in crypto investment funds

Bitcoin, the largest cryptocurrency by market capitalization, has been the main driver of this recovery. According to a CoinShares report, Bitcoin-related investment products attracted $724 million in inflows last week, not only ending a five-week streak of outflows but also cementing its position as a safe-haven asset in the digital market. 

This positive inflow of capital into Bitcoin funds translated into a 4,6% increase in the cryptocurrency's price, which reached $88.000 per BTC. Furthermore, positive inflows were recorded every day of the week, suggesting a structural shift in investor perceptions of Bitcoin.

However, not all Bitcoin-related products shared the same fate. report Weekly reports that Bitcoin short funds, which bet on the price falling, experienced net outflows of $7,1 million, reflecting a diversity of strategies within the market.

The main explanation for this Bitcoin boom lies in its role as a long-term asset and its ability to attract institutional investors. Furthermore, the more favorable macroeconomic environment, with a more dovish stance from the Federal Reserve and a possible injection of liquidity, has contributed to this resurgence.

Ethereum faces challenges despite broad market recovery

While Bitcoin leads the recovery in crypto investment funds, Ethereum, the second-largest cryptocurrency by market capitalization, continues to face significant challenges. Over the past week, Ethereum investment products saw net outflows of $86 million, making it one of the largest assets in the market.

This move contrasts with the widespread optimism generated by the crypto market's recovery. Although Ethereum has experienced a steeper correction than Bitcoin in recent weeks, which could suggest greater upside potential, investors appear to be adopting a more cautious attitude regarding their position in the ecosystem.

Current investment flows reflect a change in market sentiment

The return of investment flows to positive territory is not just a one-off phenomenon, but reflects a significant shift in investor sentiment toward cryptocurrencies. According to James Butterfill, head of research at CoinShares, the fact that every day last week saw positive flows, after 17 consecutive days of outflows, indicates a decisive shift in investor sentiment.

"Notably, every day last week saw inflows, following a 17-day consecutive streak of outflows, indicating a decisive shift in sentiment toward the asset class.", Butterfill said.

This change in trend occurs within a more favorable macroeconomic environment. The combination of a more dovish stance from the Federal Reserve and the possible easing of trade tensions between the United States and other countries has created a more optimistic environment for risk assets, including cryptocurrencies.

In addition, attention is focused on the date of April 2, when the fate of the tariffs imposed by the US government will be decided. Although foresee More targeted and less disruptive measures than those initially anticipated, uncertainty regarding their impact on global markets remains a key factor.

On the other hand, the recovery of investment flows into cryptocurrency funds has also been accompanied by an increase in the price of other cryptoassets, such as Solana, Polygon, and Chainlink, which recorded moderate inflows. However, assets such as Sui, Polkadot, Tron, and Algorand experienced outflows, highlighting the diversity of strategies and varying preferences within the market.

The United States leads the resurgence, but optimism is global.

Finally, the recovery in cryptocurrency investment flows has been driven primarily by the United States, which contributed $632 million of the total $644 million in inflows. This performance reflects the growing acceptance of cryptocurrencies as an asset class among American investors and confidence in their long-term growth potential.

However, optimism is not limited to the United States. Countries such as Switzerland, Germany, and Hong Kong also recorded positive flows, with $15,9 million, $13,9 million, and $1,2 million, respectively. Meanwhile, Sweden and Canada continued their outflows, suggesting more cautious behavior in these regions.

This geographic pattern of investment flows underscores the growing globalization of the cryptocurrency market and the diversity of factors influencing investor decisions. While some countries continue to focus on more traditional and stable assets, others are opening the door to more innovative and disruptive assets.

In conclusion, the recovery of investment flows into cryptocurrency funds, led by Bitcoin, marks an important turning point in the market. After a period of uncertainty, investors appear to be regaining confidence in cryptocurrencies as an asset class, especially in a more favorable macroeconomic environment.

Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.