Last week, digital asset exchange-traded products (ETPs) recorded a notable surge in investor activity, with net inflows of $716 million. This brought the total assets under management (AUM) to $180 billion, although it still remains below the record high of $264 billion. The strong demand for digital assets highlights growing investor confidence in cryptocurrency markets.
The US contributed the largest share of these inflows, adding $483 million to the total. Germany followed with $96.9 million, while Canada brought in $80.7 million. This indicates a broad geographical interest in crypto investments, with significant contributions from both established and emerging markets.
Bitcoin and XRP Lead the Way
Bitcoin remains the dominant player in the crypto space, attracting $352 million in inflows last week. This surge further solidified Bitcoin’s position as the flagship cryptocurrency. XRP also saw strong demand, pulling in $245 million. Chainlink made a notable impact too, bringing in $52.8 million, over half of its total fund value.
On the other hand, short Bitcoin ETPs experienced outflows, suggesting a shift in sentiment from bearish to bullish among investors. This change signals a growing confidence in the crypto market, especially in the face of global uncertainties.
Institutional Access to Crypto ETPs Expands
The trend of institutional adoption of crypto assets continues to gain momentum. Bank of America is planning to offer crypto ETPs to its Merrill Lynch advisors and clients starting in 2026. This is part of a larger movement among traditional financial institutions to integrate cryptocurrency into their offerings. In addition, brokerages like Vanguard have begun listing third-party crypto ETFs, making it easier for both individual and institutional investors to access cryptocurrency markets without the complexities of directly handling digital assets.
Macroeconomic Data Influences Crypto Investment Flows
Despite the positive momentum, the crypto market remains susceptible to macroeconomic fluctuations. A mid-week dip in investments was triggered by concerns over potential inflation, following new data from the US. Such fears can quickly alter investor sentiment, causing shifts in the flow of capital. If macroeconomic data or Federal Reserve guidance becomes more hawkish, inflows into digital assets may slow, leading to potential market reversals.