Digital asset investment products recorded inflows of $286 million last week, extending a seven-week streak that has brought total inflows to $10.9 billion, according to data released Monday. Despite the sustained investment activity, total assets under management declined to $177 billion by the weekend, down from a peak of $187 billion, as broader market volatility weighed on valuations.
The downturn in asset values came amid investor unease over U.S. trade policy following legal developments surrounding the legality of recently imposed tariffs. The resulting uncertainty appears to have impacted market sentiment despite the continued inflows.
Regional Flows Show Shifting Focus
While the United States remained the primary destination for digital asset investments with $199 million in inflows, there were signs of diversification in investor focus. Germany and Australia registered inflows of $42.9 million and $21.5 million, respectively.
Hong Kong saw its strongest week of inflows since the launch of exchange-traded products in the region just over a year ago. The market took in $54.8 million, reflecting a possible uptick in regional investor confidence or positioning ahead of regulatory developments. In contrast, Switzerland recorded outflows of $32.8 million, continuing a year-to-date trend of negative fund movement.
Ethereum Inflows Strengthen; Bitcoin Sees Pullback
Ethereum saw another week of significant inflows, totalling $321 million. This marks six consecutive weeks of inflows amounting to $1.19 billion, its most consistent positive run since December 2024. Analysts suggest the sustained interest in Ethereum indicates renewed confidence in the platform’s long-term viability following earlier regulatory concerns.
Meanwhile, Bitcoin saw early-week inflows but reversed course mid-week, finishing with minor outflows of $8 million. This marked the end of a six-week inflow streak that had accumulated $9.6 billion. The shift coincided with a New York court decision declaring U.S. tariffs illegal, an event that appears to have influenced broader investor behaviour.
Other digital assets saw mixed results. XRP experienced a second consecutive week of outflows totalling $28.2 million. The asset has struggled to retain investor interest in recent weeks amid limited positive news flow.
Outlook Remains Mixed Amid Policy Uncertainty
Despite the ongoing inflows, analysts caution that asset managers and retail investors alike remain sensitive to global policy developments. The recent court ruling on U.S. tariffs has injected fresh volatility into the market, with price softness persisting across major digital assets.
While inflows remain a positive indicator, the decline in assets under management reflects ongoing risk aversion as participants await further clarity on macroeconomic policy and regulatory direction.
