Cryptocurrency funds experience record inflows: Ether drives market to new highs

Cryptocurrency funds experience record inflows: Ether drives market to new highs

Last week was one of the most successful periods in history for cryptocurrency investment products. Global exchange-traded funds (ETPs) saw an incredible $1.9 billion in inflows, with ether (ETH) once again the star performer. Despite increased market volatility, with Bitcoin (BTC) briefly falling to $115,000 and Ether dropping below $3,600, investors remained active and confident.

This weekly inflow means that a record $29.5 billion has flowed into cryptocurrency funds since the beginning of the year (YTD). Total assets under management (AUM) reached $221.4 billion for the first time, while monthly inflows surpassed all previous records, reaching $11.2 billion. This is a significant increase compared to the previous record of $7.6 billion in December 2024 and signals strong investor interest in cryptocurrencies.

Ether as the main driver

Ether ETPs played a significant role in these successes. Investors poured an incredible $1.59 billion into them last week, representing the second-largest weekly inflow in the history of these funds. CoinShares' head of research, James Butterfill, emphasized that most of the gains were driven by Ether ETPs. Solana (SOL) followed with an inflow of $311.5 million, and XRP with $189.6 million.

On the contrary, funds focused on Bitcoin (BTC) recorded a slight outflow of $175 million, ending a series of 12 weeks of continuous inflows. However, this outflow does not mean that interest in Bitcoin is significantly waning; rather, it reflects speculation associated with expectations of the launch of US ETFs on altcoins.

What is behind this trend?

According to Butterfill, the differences in flows between Bitcoin and altcoins suggest that the current dynamics are more a reaction to expectations regarding the possible approval of altcoin ETFs than a broader season of interest in all altcoins. Some less liquid altcoins, such as Litecoin (LTC) and Bitcoin Cash (BCH), have seen smaller outflows, suggesting that investors remain cautious but retain confidence in the broader market potential.

Overall, last week showed how strong interest in cryptocurrencies is, with Ether becoming a key driver of growth. If expectations regarding ETFs are fulfilled, we can look forward to further increases and increased market activity.

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*This is not investment advice.

The Coingarage Team