Institutions Bet Big on Crypto Despite Economic Concerns

Institutional investors continued pouring capital into digital asset funds last week, even as market turbulence intensified.

According to a recent report, crypto investment products attracted substantial inflows despite concerns over global economic developments.

The latest figures from CoinShares indicate that nearly $530 million flowed into institutional crypto funds over the past week, even as market conditions were impacted by external factors, including shifts in trade policies and uncertainty surrounding DeepSeek.

The report notes that while early-week volatility led to significant outflows—totaling around $530 million on Monday—investor confidence quickly rebounded.

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By the end of the week, digital asset investment vehicles had absorbed over $1 billion in fresh capital, offsetting the earlier losses. CoinShares highlights that total inflows for 2024 have reached approximately $44 billion, with year-to-date investments exceeding $5.3 billion.

Given the overall market growth and previous trends, the firm suggests that the recent downturn was within expectations.

The majority of institutional crypto investments last week originated from the U.S., which accounted for $474 million in inflows. Europe also saw positive momentum, adding $78 million, while Canada experienced $43 million in outflows—potentially influenced by concerns over trade policies introduced by President Trump.

Bitcoin remained the dominant choice among investors, attracting $486 million in fresh capital. Ethereum, on the other hand, saw little movement, with minor outflows of $300,000. Meanwhile, XRP stood out with $14.7 million in inflows, solidifying its position as the second most favored altcoin this year. So far in 2024, XRP has accumulated $105 million in inflows, trailing only Ethereum, which has drawn $177 million.

Alexander Zdravkov