Crypto Markets See $3.7 Billion Inflows Bitcoin Leads 73% Surge

Crypto markets have witnessed a record-breaking surge in fund inflows, with a total of $3.7 billion pouring into the sector last week. This influx marks the most significant weekly increase since December 2024, pushing the total assets under management in crypto-based investment vehicles to surpass $211 billion for the first time. This trend has been sustained for thirteen consecutive weeks, with Bitcoin leading the charge in value and record-breaking performance.

The primary catalyst for this surge is the overwhelming interest in Bitcoin. Investment products focused on Bitcoin accounted for 73% of the total inflows, adding $2.7 billion to their holdings and elevating the total value of these products to $179.5 billion. The introduction of U.S.-based spot Bitcoin ETFs played a crucial role, contributing $2.72 billion to the weekly increase. This highlights the growing institutional confidence in Bitcoin as a viable investment option.

Ethereum investment products also experienced impressive gains, with a $990 million inflow marking their twelfth consecutive week of positive movement. Over the last quarter, these products have grown by 19.5%, surpassing Bitcoin’s growth rate. This growth has been bolstered by new spot ETFs, which collected $908.1 million, further cementing Ethereum's position in the crypto market.

The investment climate for other cryptocurrencies was varied. Solana-focused products saw $92.6 million in inflows, while XRP investments faced $104 million in outflows. Altcoins like SUI and Cardano received modest investments of $3.5 million and $500,000, respectively, although Chainlink suffered a $500,000 outflow. These fluctuations underscore the continued dominance of Bitcoin and Ethereum amidst the evolving trends in altcoin investments.

Spot Bitcoin ETFs saw a remarkable net inflow of $1.029 billion, with a significant contribution from institutional investors. This influx of capital is indicative of the growing confidence among institutional players in the cryptocurrency market. The trend of record inflows is not limited to Bitcoin, as Ethereum ETFs also recorded a record weekly inflow of $907.99 million, further highlighting the broad-based interest in digital assets. This surge in inflows has been driven by increased institutional participation, a more supportive regulatory environment, and growing confidence in the long-term potential of cryptocurrencies.

The continuous stream of inflows into spot Bitcoin ETFs has drawn in around $16.2 billion since April, underscoring the sustained interest from institutional investors. This trend has been further bolstered by the recent rally in Bitcoin prices, which hit a new all-time high. The price surge has been driven by on-chain trends, increased institutional participation, and growing confidence in a more supportive regulatory environment.

The persistent net absorption of Bitcoin by long-term holders, who are currently absorbing more Bitcoin than miners are issuing, is contributing to a structural supply squeeze. This supply-side tightening is expected to provide further support for upward price momentum. Wallets holding less than 100 BTC have been accumulating around 19,300 BTC per month, while monthly miner issuance stands at just 13,400 BTC. This imbalance is creating a measurable supply-side tightening, which could drive prices even higher.

The optimism surrounding the crypto market is also built around regulations, with the anticipation of supportive legislation and regulatory clarity further fueling the inflows into crypto funds. This regulatory optimism, combined with the structural supply squeeze, is expected to continue driving the price of Bitcoin and other cryptocurrencies higher in the coming months. The continued confidence and rising investments within the crypto market underscore the sector’s resilience and potential for growth, drawing substantial interest from institutional and individual investors alike.