Digital asset products saw $3.3 billion in inflows last week

This surge of capital brought the total year-to-date inflows to a record-breaking $10.8 billion.

Digital asset products saw inflows of $3.3 billion last week as investors continue to rotate into alternative assets, according to CoinShares’ latest digital asset fund weekly report.

This marks the sixth consecutive week of positive flows and brought year-to-date inflows to a new all-time high of $10.8 billion, compared to the previous week’s outflows of $6.7 billion.

The past week also saw total assets under management for digital asset funds briefly hit a record high of $187.5 billion, indicating a renewed interest from investors.

CoinShares head of research James Butterfill said that investors have been seeking out alternatives assets due to the shifting conditions of the U.S. market, more specifically

“We believe that growing concerns over the U.S. economy, driven by the Moody’s downgrade and the resulting spike in treasury yields, have prompted investors to seek diversification through digital assets,” said Butterfill.

As a result, most of the funds continue to come from U.S. investors, who contributed as much as $3.2 billion in capital.

Other countries like Germany, Australia and Hong Kong saw relatively modest capital flows compared to the U.S., reaching inflows of $41.5 million, $10.9 million, and $33.3 million respectively.

On the other hand, Swiss investors were able to take advantage of the recent price surge as an opportunity to secure gains, resulting in $16.6 million of outflows. Sweden and Brazil also experienced outflows amounting to $12.1 million and $1.9 million.

Bitcoin (BTC) continues to dominate with inflows of $2.9 billion, which is equal to 25% of the total inflows achieved in 2024.

Amidst the ongoing rally that has catapulted the price of BTC to a new all-time high of $111,814, investors saw it as an opportunity to invest in short-Bitcoin products. In the past week, short-Bitcoin saw $12.7 million in flows, its highest recorded weekly inflow since December 2024.

In addition, Ethereum (ETH) saw $326 million in capital flow, marking the cryptocurrency product’s fifth consecutive week of gains and the token’s highest recorded amount in the past 15 weeks.

In contrast, XRP (XRP) broke its 80-week-long inflow streak with $37.2 million in outflows, the largest ever recorded for XRP.