Crypto investment products had a major turnaround last week, with net inflows of $644M. This concluded a five-week outflow of $6.4B. US investors took the lead, contributing $632M to the inflow.
Bitcoin-based funds dominated, receiving $724M in net inflows. The US spot Bitcoin ETFs alone generated $744.3M. Altcoins such as Solana, Polygon, and Chainlink also experienced good flows. However, Ethereum products experienced the largest outflows, totaling $86M. This was partly due to a $102.9M withdrawal from US spot Ethereum ETFs.
The shift in mood coincides with Bitcoin's rise to $87,000 and a 5.5% increase in the GMCI 30 index. Since March 10, total assets under management increased by 6.3%. Analysts credit the recovery to better macroeconomic conditions. These include a potentially nuanced tariff policy and a more dovish Federal Reserve position.
Yet, market volatility is still a possibility due to political uncertainty. This increased optimism marks a potential turning point in the crypto markets following a difficult period.
