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Cryptocurrency markets saw significant alterations last week, as disclosed by CoinShares in its most recent Crypto Asset Fund Flows Weekly Report. Per the latest publication, digital asset investment vehicles experienced inflows of $286 million, marking a seventh consecutive week of positive investment that cumulatively reached $10.9 billion.
In spite of the sustained momentum in capital inflows, total assets under management (AuM) saw a decline, falling to $177 billion from the previously noted peak of $187 billion.
The drop in AuM coincided with increased market turbulence, mainly linked to uncertainties surrounding US tariff regulations. Mid-week occurrences in the United States included a ruling from a New York court declaring certain US tariffs unlawful, which subsequently undermined investor confidence and induced fluctuations in cryptocurrency prices.
This court decision effectively countered the strong inflow trend Bitcoin had initially demonstrated earlier in the week, culminating in slight net outflows.
Geographical Shift in Crypto Investments
The CoinShares report showcased a distinct geographical shift in investor outlook. While the United States continued to see substantial investment inflows totaling $199 million, other areas drew heightened investor interest.
Germany and Australia reported inflows of $42.9 million and $21.5 million, respectively. Nevertheless, it was Hong Kong that prominently distinguished itself, achieving its peak weekly inflows since the launch of its exchange-traded products (ETPs), totaling $54.8 million.
This achievement highlights the growing regional investor assurance and Hong Kong’s bolstering status as a crypto-advantageous region.
On the other hand, Switzerland deviated from this favorable trend, experiencing net outflows of $32.8 million. These withdrawals positioned Switzerland among the few nations reflecting a negative year-to-date flow.
The differing inflow and outflow patterns across these international markets suggest contrasting investor strategies and risk appetites influenced by both local regulatory structures and wider economic conditions.
Ethereum Shines, Bitcoin Encounters Setback
Ethereum stood out as the premier asset in the report, capturing $321 million in inflows last week. This represented Ethereum’s sixth consecutive week of positive investment, cumulatively reaching $1.19 billion, marking its most robust inflow sequence since December 2024.
The steady and growing investor interest in Ethereum signifies enhanced market sentiment and underscores the asset’s durability amid recent volatility.
In sharp contrast, XRP faced its second straight week of outflows, totaling $28.2 million. This deviation from Ethereum’s path could mirror ongoing investor wariness or profit-taking following an extended period of positive performance for XRP.
Bitcoin, the foremost cryptocurrency by market capitalization, initially attracted substantial inflows at the beginning of the week. However, the court decision regarding US tariffs affected investor mood, leading to a reversal mid-week.
By the end of the week, Bitcoin reported slight net outflows amounting to $8 million, marking the first outflow after six weeks of consecutive positive investment totaling $9.6 billion.
Featured image generated with DALL-E, Chart from TradingView
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