Crypto Funds See 11th Week of Inflows 2.7 Billion Amid Macro Uncertainty

Crypto funds have experienced an 11th consecutive week of inflows, with $2.7 billion entering digital-asset products in the week ending June 27. This sustained institutional demand has resulted in a total of $16.9 billion in inflows since early May, accounting for approximately 95% of the year-to-date total for 2025. Bitcoin and Ethereum have been the primary beneficiaries of this trend, as investors seek uncorrelated assets amidst macroeconomic uncertainty.

Short-Bitcoin products, however, saw outflows of $2.9 million, bringing the year-to-date bearish-bet outflows to $12 million. This trend highlights the growing confidence in the long-term potential of digital assets, despite short-term volatility.

Through June 27, crypto funds have amassed $16.9 billion, nearing the $17.8 billion recorded in the first half of 2024. Last week's inflows followed gains of $1.2 billion and $1.9 billion in the prior two weeks, indicating strong momentum as the year progresses. Bitcoin investment products captured $2.224 billion last week, representing 83% of the total inflows. Ether-linked funds added $429.1 million, pushing its 2025 inflows to $2.9 billion. The Pectra upgrade, implemented in June, has supported renewed ETH demand, according to market participants. In contrast, Solana funds have seen only $91 million in inflows so far this year.

Regionally, the United States accounted for $2.65 billion of last week’s inflows, underscoring the dominance of US-based institutional allocators. Switzerland and Germany followed with modest weekly gains of $23 million and $19.8 million respectively, while Hong Kong and Canada posted small outflows.

James Butterfill, head of research at CoinShares, attributed the resilient investor demand to heightened geopolitical volatility and uncertainty surrounding the direction of monetary policy. The Moody’s June downgrade of the US credit outlook and recent tariff threats have prompted investors to seek hedges outside equities and bonds. Monetary policy ambiguity at the Federal Reserve remains a key driver, with the Fed’s indecision over timing for rate cuts leaving markets jittery. This has prompted macro-savvy allocators to view digital assets as a hedge against inflation and dollar volatility.

Despite stalling equity benchmarks and climbing bond yields, digital-asset flows have held firm. The alignment between digital assets and traditional finance is deepening as institutions refine their risk-management and diversification strategies. Looking ahead, clarity on US monetary policy and geopolitical developments will likely dictate the next leg of inflows. For now, the 11-week inflow streak and near-record H1 pace reflect a robust conviction in digital-asset diversification.

Regulatory watchers are now focused on the SEC’s review of over 70 crypto ETF filings, with decisions expected throughout 2025 and into 2026. Approval of new spot Bitcoin and Ether ETFs could unlock additional institutional inflows, further strengthening digital assets’ role within traditional portfolios.