Institutional Crypto Investments Surge 94% to $3.4 Billion Amid Tariff Concerns

Crypto asset management firm CoinShares reported that institutional investments into digital asset vehicles nearly reached a new record last week. The surge in inflows, totaling $3.4 billion, was the third largest on record. This influx was attributed to concerns over the impact of tariffs on corporate earnings and the weakening of the US dollar, which has led investors to view digital assets as an emerging safe haven.

The United States led the way with $3.4 billion in inflows, while Germany and Switzerland contributed $41 million and $51 million, respectively. Bitcoin (BTC) products were the primary beneficiaries of investor sentiment, attracting $3.2 billion in inflows. In contrast, short-BTC products saw only minor inflows of $1.6 million.

Ethereum investment products also experienced a significant turnaround, with $183 million in inflows following an eight-week period of outflows. Solana was the only altcoin to see outflows, totaling $5.7 million. Other altcoins, such as Sui and XRP, saw inflows of $20.7 million and $31.6 million, respectively.

The shift towards digital assets as a safe haven is a notable trend, driven by macroeconomic factors such as tariffs and currency fluctuations. This trend highlights the growing acceptance of digital assets as a viable investment option, particularly during times of economic uncertainty. The significant inflows into Bitcoin and Ethereum products underscore the continued dominance of these two cryptocurrencies in the market. The varied performance of altcoins, with some experiencing inflows while others saw outflows, suggests a more nuanced investor sentiment towards these assets. Overall, the data indicates a robust interest in digital assets, with investors seeking to diversify their portfolios in response to global economic conditions.