Crypto funds see $1.1 billion weekly inflows as Bitcoin ETFs dominate and Ethereum reverses outflows

Crypto investment products rebounded sharply last week as improving macro conditions reversed institutional sentiment, according to data released Monday by asset manager CoinShares.

The $1.1 billion in weekly inflows marked the strongest weekly performance since early January. CoinShares attributed the turnaround to tentative ceasefire developments in Iran and softer-than-expected US CPI data that helped restore investor confidence, said James Butterfill, head of research at CoinShares.

Flows and trading activity

U.S. investors drove the return to crypto, accounting for $1.06 billion, or 95% of global flows. U.S. spot Bitcoin ETFs captured the majority of that activity with $833.2 million in weekly inflows.

Trading volumes rose 13% week-over-week to $21 billion, CoinShares data showed, though the figure remains below the year-to-date average of $31 billion, indicating potential for further recovery.

Institutional positioning: exposure and hedging

The inflow surge reflected more sophisticated institutional positioning, with investors increasing both bullish bets and downside hedges. While Bitcoin funds globally attracted $871 million and Ethereum received $196.5 million after three weeks of outflows, short-Bitcoin products recorded $20.2 million in inflows—its highest weekly total since November 2024.

This combination suggests institutions were adding crypto exposure while maintaining protection against potential volatility.

Year-to-date context and asset performance

Last week’s inflows lifted Bitcoin’s year-to-date inflows to just under $2 billion, representing 83% of the $2.3 billion in total crypto ETP inflows recorded in 2026 so far. Ethereum remains one of the few assets in negative territory for the year, with cumulative outflows of $130 million, despite its weekly recovery.

The broader inflow rebound also increased total assets under management to levels not seen since early February.

XRP funds led the previous week with nearly $120 million in inflows, even outpacing Bitcoin funds during that period. However, XRP inflows fell to $19.3 million last week, according to the CoinShares report.

What changed and near-term catalysts

The rebound follows five consecutive weeks of outflows totaling $4 billion that weighed on sentiment through March.

Among the catalysts during last week’s recovery was the launch of Morgan Stanley’s Bitcoin ETF. The product pulled in nearly $62 million in investments last week after its Wednesday launch, according to Farside Investors.

Morgan Stanley has also filed for Ethereum and Solana ETFs. Amy Oldenburg, of Morgan Stanley, told Decrypt that the firm plans to explore additional crypto-related offerings for clients, including a tokenized money market fund and tax-harvesting services.