- Crypto ETPs attracted $3.3 billion last week, pushing 2025 inflows above $10.8 billion.
- Bitcoin led inflows with $2.9 billion, while XRP faced record outflows amid shifting investor sentiment.
Crypto exchange-traded products (ETPs) pulled in an impressive $3.3 billion last week alone, bringing this year’s total inflows to a record $10.8 billion. This surge reflects growing investor appetite for regulated ways to gain exposure to digital assets. CoinShares reports that assets under management (AUM) in crypto ETPs briefly touched a new peak of $187.5 billion.
Bitcoin continues to dominate, accounting for $2.9 billion of these inflows—nearly a quarter of the total for the year. On May 22, Bitcoin surged past the $110,000 mark, sparking increased enthusiasm among investors.
James Butterfill, CoinShares’ head of research, attributes this to growing economic uncertainty in the U.S. “The Moody’s downgrade and rising Treasury yields are pushing investors to diversify into digital assets,” he said. Interestingly, short Bitcoin products also saw $12.7 million in inflows, their highest since December 2024, showing that some investors are hedging against potential price dips.
Ethereum saw a strong week as well, drawing $326 million in new investments—its best performance in four months. This positive momentum follows the successful rollout of the Pectra upgrade earlier this month, which has boosted confidence among ETH holders.
XRP Outflows Highlight Changing Investor Sentiment Amid Market Uncertainty
Unlike Bitcoin and Ethereum, XRP experienced a sharp reversal. After 80 weeks of steady inflows, XRP ETPs recorded an unprecedented $37.2 million in outflows last week—the largest ever seen. James Butterfill pointed out the unusual pattern, noting that XRP’s price lagged despite positive developments like the possible approval of a U.S. spot XRP ETF and a robust $2.2 billion futures market.
Source: Coinshare
This sell-off likely signals a shift in investor strategy amid broader market jitters. Geographically, the U.S. led inflows with $3.2 billion, followed by Germany, Hong Kong, and Australia. Switzerland saw $16.6 million flow out, probably as investors took profits after recent gains.
Macroeconomic and Geopolitical Factors Boost Crypto Market Revival
The latest surge in crypto ETP investments comes as tensions ease on the macroeconomic and geopolitical fronts. Bitcoin’s breakthrough past $110,000 coincided with President Donald Trump’s announcement of extended trade talks with the European Union, avoiding a potential tariff conflict. This news, shared on Truth Social, helped calm investor fears about global economic disruptions.
Reduced trade tensions have improved risk appetite across markets, benefiting cryptocurrencies. Bitcoin’s role as a hedge against fiat currency volatility remains strong amid ongoing inflation worries and economic uncertainty. Additionally, clearer regulations and growing institutional acceptance continue to attract fresh capital into crypto ETPs.
The rise of crypto ETPs is changing how investors access digital assets by combining the familiarity of traditional financial products with blockchain’s growth potential. With a record $10.8 billion flowing in this year alone, crypto ETPs are becoming key tools for diversifying portfolios in today’s unpredictable financial environment.
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