U.S. cryptocurrency investment products have recorded a fifth consecutive week of net inflows, marking a full recovery from the $7 billion sell-off that occurred in February and March.
Digital asset funds in the United States have attracted over $7.5 billion in investments so far in 2025, with the latest weekly net inflows demonstrating continued strong demand from investors.
According to a May 19 report from digital asset management firm CoinShares, U.S.-based cryptocurrency investment products attracted $785 million in inflows last week, pushing the year-to-date total beyond the $7.5 billion milestone.
This data confirms the market’s fifth straight week of positive flows, reversing the significant outflows of nearly $7 billion experienced during February and March.
The United States led this wave of inflows with a total of $681 million, followed by Germany with $86.3 million and Hong Kong with $24.4 million.
Investor appetite for risk assets, including cryptocurrencies, rebounded noticeably following the White House’s May 12 announcement of a 90-day suspension of additional tariffs. This policy shift resulted in a 24% reduction in import duties between the U.S. and China.
André Dragosch, Head of Research at Bitwise Europe, noted that on the day after the policy announcement, Coinbase recorded a net outflow of 9,739 Bitcoin (BTC)—valued at over $1 billion—marking the largest single-day net outflow so far in 2025 and a clear signal of "accelerating institutional demand."
Ethereum (ETH) Leads with $205 Million in Weekly Inflows
Ethereum (ETH) stood out among cryptocurrency investment products, attracting $205 million in inflows last week. This brings its total inflows since the beginning of the year to over $575 million.
The report attributed this strong performance to the successful implementation of the Pectra upgrade and the appointment of new co-executive director Tomasz Stańczak, both of which strengthened investor confidence.
After an initial delay, Ethereum’s Pectra upgrade went live on the mainnet on May 7, introducing several technical improvements including higher staking limits and account abstraction via EIP-7702.
In contrast to other major digital assets, Solana (SOL) investment products were the only major asset to experience net outflows, with a total withdrawal of $890,000 over the past week.
Around the same time, Ethereum co-founder Vitalik Buterin released a new proposal aimed at preserving Ethereum’s trustless and censorship-resistant access. The proposal seeks to make Layer 1 scaling more user-friendly for individuals running nodes for personal use.
“This plan would significantly reduce the 1.3 TB data burden by allowing nodes to sync only relevant information, opening the door to broader community participation,” said Stella Zlatareva, editor of Nexo Dispatch, in a comment to Cointelegraph.
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Frequently Asked Questions
What caused the rebound in U.S. cryptocurrency fund inflows?
The rebound is largely attributed to improved macroeconomic conditions, including the suspension of additional tariffs between the U.S. and China, which renewed investor confidence in risk-on assets like cryptocurrencies.
Which cryptocurrency received the highest inflows recently?
Ethereum (ETH) led with $205 million in weekly inflows, bolstered by its successful Pectra upgrade and new executive leadership.
Did all major cryptocurrencies experience inflows?
No, Solana (SOL) was an exception, experiencing modest outflows of $890,000 during the same period, while Bitcoin and other altcoins saw continued interest.
What is the significance of the Pectra upgrade?
The Pectra upgrade introduced higher staking limits and improved account abstraction, enhancing both scalability and user experience on the Ethereum network.
How did institutional behavior change recently?
Institutional demand accelerated noticeably, as evidenced by large Bitcoin outflows from exchanges—indicative of accumulation by large-scale investors.
Are these inflows expected to continue?
While market conditions remain dynamic, consecutive weeks of inflows and positive regulatory developments suggest sustained interest in the medium term.