Crypto Institutional Funds See $785 Million Inflows Bitcoin Leads With $557 Million

Digital assets experienced another week of significant inflows into institutional products, driven by surging market sentiment. Bitcoin (BTC) and Ether led the gains, with seven-day investments totaling $785 million. Meanwhile, mid-week Solana (SOL) and multi-asset funds faced bearish pressures. Overall, traders' bullish outlook is supported by an uptick in both stocks and crypto prices.

According to the latest CoinShares Digital Asset Weekly Flows data, institutional demand for digital assets has been on the rise in May. In the past week, crypto institutional funds attracted $785 million, marking the fifth consecutive week of inflows following a prolonged downturn sparked by United States trade tensions. This influx has brought total assets under management (AUM) to $172 billion, with yearly inflows exceeding $7.5 billion. This surge has helped reclaim the $6 billion losses incurred between February and March.

Bitcoin led the gains with $557 million in inflows, although this represents a slight drop from previous weeks. This decrease is attributed to hawkish signals from the Federal Reserve. Institutional demand for Bitcoin is strengthening as the price approaches its all-time high. Whale purchases have intensified since the last dip, bolstering investors' year-end outlook. Additionally, Metaplanet and Strategy continue to accumulate Bitcoin, with the latter purchasing an additional 7,290 BTC. Short-Bitcoin products faced outflows totaling $5.8 million last week due to relatively high bull volumes. The United States led geographical data, with Hong Kong reaching a new high since November.

Investor sentiment varied across regions. The United States, Germany, and Hong Kong recorded inflows of $681 million, $86.3 million, and $24.2 million, respectively, with Hong Kong marking its largest inflow since November 2024. In contrast, Sweden, Canada, and Brazil saw outflows of $16.3 million, $13.5 million, and $3.9 million, respectively.

Altcoin traders faced mixed signals due to market volatility. Ethereum products saw $204 million in inflows, bringing monthly inflows to $242 million and year-to-date figures surpassing $757 million. XRP, SUI, and ADA saw inflows of $4.9 million, $9.3 million, and $500,000, respectively. However, institutional favorite Solana faced bearish pressure as whales dumped assets. Experts believe this is due to profit-taking, although current headwinds have decreased the SOL price by 4%. Despite the expected spot ETFs in the United States, Solana recorded $900,000 in exits.