US crypto funds smash old record amid 4-week inflow streak

Cryptocurrency investment products experienced robust inflows last week, totaling $882 million, pushing global crypto fund assets close to all-time highs. This follows a four-week surge of $6.3 billion in inflows for global crypto exchange-traded products (ETPs), representing 93% of total year-to-date (YTD) inflows. YTD inflows now stand at $6.7 billion, nearing the record $7.3 billion from early February.

In the US, crypto ETFs reached a record $62.9 billion in cumulative net inflows since their January 2024 launch, surpassing February’s $61.6 billion high. Globally, total assets under management (AUM) in crypto funds are at $169 billion, only 2.5% below the January record of $173.3 billion. While impressive, last week’s inflows represent a slowdown from the $2 billion and $3.4 billion seen in the first and last weeks of May, respectively.

Bitcoin (BTC) dominated, attracting $867 million in inflows last week, bringing its YTD inflows to $6.6 billion and AUM to $146 billion. Ether (ETH) saw significantly less activity, with only $1.5 million in inflows. Sui (SUI) was the top-performing altcoin, with $11.7 million in inflows, while Solana (SOL) experienced $3.4 million in outflows.

BlackRock’s iShares products were the primary beneficiaries, attracting $1 billion in inflows last week and a remarkable $8.1 billion YTD, exceeding the industry total. Conversely, Grayscale and Bitwise saw outflows of $168 million and $27 million, respectively. Fidelity and ARK reversed negative trends, reporting inflows of $62 million and $46 million.

This bullish trend coincides with a cryptocurrency market rally, with Bitcoin exceeding $100,000 for the first time since January. The total crypto market capitalization reached nearly $3.5 trillion, though still down from December 2024’s high of $3.9 trillion. CoinShares attributes this growth to factors such as a rising global M2 money supply, stagflationary risks in the US, and several US states adopting Bitcoin as a strategic reserve asset. Bitcoin’s price, at publication, was slightly below its December 2024 high of over $106,000.