Crypto investment products see third week of gains led by US investors

CoinShares data shows that cautious optimism is returning as capital flows rise, even as Bitcoin lags and volatility in the crypto markets continues.

Digital asset investment products recorded total inflows of $864 million last week, in the third straight week of modest gains.

CoinShares said this trend indicates cautiously optimistic investor sentiment, despite mixed market reactions following the recent rate cut by the US Federal Reserve.

Cautious optimism is building

According to According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, Bitcoin led the inflows with $522 million, while short Bitcoin products saw outflows of $1.8 million as confidence in the leading cryptocurrency increased. However, Bitcoin remains a “relative laggard” this year, with inflows of $27.7 billion this year, compared to $41 billion in 2024.

Ethereum also attracted strong interest after raising $338 million in capital, pushing this year’s inflows to $13.3 billion, up 148% from last year. Solana continued to see smaller increases, with the latest totaling $65 million this past week. Annual inflows amount to $3.5 billion, a tenfold increase compared to 2024. XRP followed suit with almost $47 million.

Other major moves included Aave and Chainlink, with inflows of $5.9 million and $4.1 million, respectively. Litecoin also welcomed a modest $0.3 million during the same period.

In the meantime, Hyperfluid and Sui had outflows of $14.1 million and $0.3 million, respectively. Multi-asset products also recorded outflows of as much as $104.8 million.

Regional data shows the strongest investor interest is in the United States, which recorded inflows of $796 million last week. Germany also recorded about $68.6 million, while Canada attracted $26.8 million. Together, these three markets continue to dominate global activity, accounting for 98.6% of total inflows this year.

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Bitcoin faces a bleak outlook

Further reinforcing the market’s cautious tone, a separate analysis warned that Bitcoin could face a deeper correction in the coming months. The pseudonymous Wall Street market analyst said weakening macroeconomic conditions, delayed Federal Reserve easing and deteriorating technical signals point to a brutal lull. Bitcoin has already fallen to around $90,000 from its October peak of almost $126,000, and the analyst expects a brief bounce towards $100,000 before further declines.

He pointed to a breakdown of several technical indicators, including a weekly close below the 50-week exponential moving average and bearish momentum signals, as signs of a broader bear phase. Unless significant liquidity support is introduced, he said Bitcoin could initially fall to $68,000-$74,000, with a deeper move towards $54,000-$60,000 by the end of 2026.