Crypto Inflows Hit $2.7B in One Week, What Are Institutions Buying?

Crypto asset investment products saw continued momentum last week, with $2.7 billion in net inflows reported across major funds. According to data from CoinShares, this marks the 11th consecutive week of inflows, bringing the year-to-date total to $16.9 billion. The sustained interest has been led by institutional players such as BlackRock, Fidelity, Grayscale, Bitwise, ProShares, and 21Shares, all of which have seen growing demand for their crypto-related products. US Leads Inflows While Bitcoin Maintains Dominance The majority of last week’s inflows originated from the United States, which accounted for $2.65 billion of the global total. Minor contributions also came from Switzerland and Germany, at $23 million and $19.8 million respectively. Meanwhile, other regions, including Canada, Hong Kong, and Brazil, saw modest outflows. Notably, Hong Kong registered total outflows of $132 million for the month of June, despite having previously recorded strong inflow activity during regional price rallies. Bitcoin remained the primary recipient of institutional interest, attracting $2.2 billion, or roughly 83% of the week’s inflows. Short-Bitcoin products, however, experienced $2.9 million in outflows, bringing total year-to-date outflows for bearish bets on BTC to $12 million. This inverse movement highlights a broader market leaning towards long exposure, reflecting positive sentiment around Bitcoin’s current price structure and potential future performance. James Butterfill, head of research at CoinShares, noted that the mid-year performance closely tracks that of 2024, which ended June with inflows totaling $18.3 billion. Butterfill attributed the ongoing trend to a combination of macroeconomic factors, including geopolitical instability and shifting expectations around central bank policies. He emphasized that uncertainty surrounding interest rate cuts and broader economic signals has likely driven investors to consider digital assets as part of a diversified strategy. Ethereum Sees Solid Inflows, Solana Lags Behind Ethereum also recorded meaningful inflows last week, with $429 million added to institutional products tied to the asset. Year-to-date, Ethereum-focused funds have now accumulated $2.9 billion in net inflows, positioning it as the second-most favored digital asset among institutional investors . The rise in ETH inflows comes amid continued growing activity in Layer 2 networks, which have contributed to the platform’s expanding utility. Solana, by contrast, continues to lag in investor interest, with only $91 million in inflows reported for the year so far. While Solana has gained traction in areas such as DeFi and NFT issuance, it appears to be attracting more speculative capital rather than large-scale institutional flows at this stage. The disparity between Ethereum and Solana suggests that investor confidence is still largely tied to the more established networks when allocating capital to altcoins. Featured image created with DALL-E, Chart form TradingView