Crypto Investment Products See $785M Inflows, U.S. Leads With $681M

Crypto investment products experienced a significant rebound last week, attracting $785 million in inflows. This influx pushed the year-to-date totals to $7.5 billion, effectively erasing the nearly $7 billion that was withdrawn during the market correction in February and March. The recovery was predominantly driven by U.S.-based investors, who contributed $681 million, followed by $86.3 million from Germany and $24.2 million from China Hong Kong. Notably, China Hong Kong saw its largest inflow since November 2024.

Bitcoin products were the primary beneficiaries of last week's inflows, attracting $557 million. This figure, while substantial, represents a slight decrease from the previous week. The U.S. Federal Reserve's continued hawkish stance may have tempered some investor enthusiasm. Despite this, U.S.-listed spot bitcoin ETFs have shown a strong recovery. After experiencing outflows of $3.56 billion in February and $767 million in March, these funds saw nearly $3 billion in inflows last month. So far in May, these funds have brought in $2.64 billion.

Short bitcoin products continued to see inflows for the fourth consecutive week, indicating that some investors are either hedging their bets or positioning for potential downside moves. Among altcoins, ether products stood out with $205 million in inflows, the highest since March. This recovery is likely linked to the successful Pectra upgrade. In contrast, products invested in Solana were the only ones to record net outflows among the top investment vehicles, losing just under $1 million for the week.

The recovery in crypto investment products highlights a renewed interest and confidence among investors, particularly in the U.S. and Europe. The significant inflows into bitcoin and ether products suggest that despite market volatility, there is a strong underlying demand for these digital assets. The continued inflows into short bitcoin products also indicate a cautious approach by some investors, who are preparing for potential market fluctuations. Overall, the data points to a resilient crypto market that is capable of recovering from significant outflows and maintaining investor interest.