Key Insights:
- Amid Pectra’s upgrade and new leaders, Ethereum attracted $205M in alt inflows.
- Crypto funds experienced inflows of $785M last week, entirely correcting the outflows from February and March.
- Bitcoin received $557M in investment, but with the Fed suggesting a cautious stance, its growth is slowing down.
In the week, digital asset investment products saw inflows totaling $785 million. This positive result marks the fifth week in a row of inflows, a sign that investors are feeling more confident. This additional amount brings current inflows for 2025 to $7.5 billion which is greater than the $7.2 billion peak seen in February.
After the February to March correction, the market has completely recovered from the rapid selling. The amount of money leaving the country was close to $7 billion by then. This development is seen as a sign of people and organizations heading back to digital currencies thanks to improved blockchain technology and updates to its infrastructure.
Regional Trends Show Mixed Sentiment
Inflows of capital tended to occur differently in various parts of the world. With a total of $681 million, the United States remained the strong leader in attracting institutional capital. Germany invested $86.3 million, Hong Kong registered $24.2 million in inflows, and Switzerland added $19.1 million to digital asset funds.
Some regions, however, did not see economic growth. Sweden had $16.3 million withdrawn, whereas Canada and Brazil had $13.5 million and $3.9 million withdrawn. Because of this difference, it appears that investor behavior in each region is affected by the local regulations and threats of different currencies.
The renewed interest in Hong Kong is caused by its new policies, which now allow more investors to get involved in crypto. Continued assets flowing into Germany are probably encouraged by clear rules and a wide range of investment options.
Ethereum Attracts Strong Investment Amid Technical Upgrades
Ethereum saw $205 million in inflows during the past week, marking a recovery in investor sentiment. Year-to-date inflows into Ethereum investment products now total $575 million. The renewed interest is partly due to the completion of the Pectra network upgrade, which aims to improve scalability and user experience.
The appointment of Tomasz Stańczak as co-executive director at the Ethereum Foundation has also contributed to the positive outlook. Stańczak is known for his work in Ethereum client development, and his leadership has brought confidence in the protocol’s direction.
Source: X
Social media trends have also reflected this growing interest. On May 18, a user on X (formerly Twitter), @TedPillows, posted, “ETH Golden Cross confirmed. $3,000 Ethereum is coming next.” While such statements are speculative, they often influence retail investor sentiment. Another post from the same user noted that Ethereum whales have accumulated $1.25 billion worth of ETH in the past month.
Bitcoin Still Leads but Growth Slows
Over $557 million was added to Bitcoin investment products last week. Still, the amount was lower this time around compared to last week’s figures. Market analysts believe the Federal Reserve’s rigorous policy is the main reason growth is slowing.
For the fourth consecutive week, products that allow short-term Bitcoin investing attracted additional inflows of $5.8 million. As a result, this shows that some traders are taking steps to protect themselves against possible market swings or volatility soon. Although Bitcoin is the number one cryptocurrency, it did not increase in value the most this week.
While institutions are still interested in Bitcoin, investors are diversifying and participating more in different assets. Even though markets are generally positive, many traders feel cautious due to the heavy demand for short products.
Altcoins Show Diverging Investment Activity Except Ethereum
Among other digital assets, Solana was the only major ETP (exchange-traded product) to record outflows. It saw $0.89 million withdrawn during the week.
This contrasts with Ethereum’s performance and suggests a shift in preference toward assets with recent development milestones or leadership changes.
Other altcoins and multi-asset products did not register major movements this week. Investors appear to be consolidating their positions in higher liquidity assets like Bitcoin and Ethereum, while keeping risk exposure to altcoins lower.
Meanwhile, analyst are projecting a bullish rally for altcoins with them witnessing a golden cross, which is an indicator of a bull trend.
Source: X
While some altcoins have seen gains in recent months, the focus is on assets with strong institutional backing and ongoing development.
Funds seem to be rotating capital into platforms that are updating infrastructure and improving governance.
