$3.3 Billion Pours Into Crypto—Here’s Why the Market Is Ignoring Traditional Finance’s Skepticism

Crypto’s latest bull run isn’t just hype—it’s a tidal wave of capital. Over $3.3 billion flooded digital asset markets in just seven days, defying the usual ’bubble’ chatter from Wall Street suits still waiting for their fax machines to confirm the news.

What’s driving the frenzy? Institutional FOMO meets retail traders chasing the next ATH. Meanwhile, decentralized protocols eat traditional finance’s lunch—again.

One thing’s clear: while banks debate ’risk exposure,’ smart money’s already onboard. The train’s leaving the station... and it’s powered by blockchain, not bureaucracy.

Bitcoin and Ethereum Dominate Institutional Interest

Bitcoin once again led the inflow charts, attracting $2.9 billion last week, bringing its share of 2024 inflows to over 25%. The report also noted that some investors used the price strength as a chance to open short positions.

Short-Bitcoin products recorded their largest weekly inflow since December 2024, totaling $12.7 million. The mixed behavior among traders highlights ongoing divergence in sentiment regarding Bitcoin’s near-term trajectory.

Ethereum followed with $326 million in inflows, marking its strongest week in more than three months and continuing a five-week streak of positive sentiment. The increase in Ethereum-related flows comes amid improving investor confidence in its fundamentals and broader market positioning.

Other notable movements include the end of XRP’s long-standing inflow streak. The asset saw $37.2 million in outflows last week, breaking an 80-week streak and marking its largest recorded weekly exit.

While XRP had previously been seen as a more stable option among altcoins, this reversal may indicate a shift in investor sentiment or portfolio rebalancing.

Digital Asset Inflows Hit $3.3B in a Week, Driving YTD Total to Record $10.8B

Digital asset investment products saw inflows of US$3.3B last week. @Bitcoin saw inflows of US$2.9B @ethereum also saw inflows of US$326M. $XRP saw outflows of US$37.2M. Year-to-date inflows have… pic.twitter.com/eLnu5HfK8a

— CoinShares (@CoinSharesCo) May 26, 2025

Geographic Trends and Market Implications

The US accounted for the lion’s share of global inflows, with $3.2 billion recorded last week. Germany, Hong Kong, and Australia also posted notable gains at $41.5 million, $33.3 million, and $10.9 million respectively.

Conversely, Switzerland experienced $16.6 million in outflows as investors locked in profits following recent price strength. These regional flows reflect differing risk appetites and macro outlooks among institutional investors.

James Butterfill, head of research at CoinShares, commented that the inflow activity reflects investors seeking diversification amid macroeconomic uncertainties. Butterfill said.

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.

As inflows remain strong and AuM approaches new highs, attention may now turn to how regulators respond to growing institutional interest in crypto products. The recent surge in activity could influence policy discussions around digital assets in both the US and international markets.

Featured image created with DALL-E, Chart from TradingView