BTC Investors Pour Millions Despite Market Fear—Is XRP Next Big Winner?

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  • Crypto funds attract $226 million inflows, led by BTC products, despite ongoing tariff concerns and recent volatility pressures globally.
  • BTC-based products captured $195 million net inflows last week, while short-BTC positions witnessed continued outflows totaling $2.5 million.

Global cryptocurrency investment products managed by companies such as BlackRock, Fidelity, Grayscale, Bitwise, ProShares, and 21Shares recorded a second consecutive week of net inflows, totaling $226 million. These figures, shared by CoinShares, indicate cautious optimism among investors despite broader market uncertainty.

CoinShares Head of Research, James Butterfill, described investor sentiment as “positive but cautious.” According to him, after a period marked by record outflows, crypto exchange-traded products (ETPs) have experienced inflows for nine trading days straight.

coinshare-altcoin-analyst
Source: Coinshare

Only last Friday saw minor withdrawals amounting to $74 million. Butterfill suggests that these withdrawals resulted from U.S. core inflation data exceeding expectations, signaling the Federal Reserve may maintain a stricter monetary policy stance for longer.

The crypto market faced added pressures from recent political developments. U.S. President Donald Trump announced plans for a 25% tariff on goods from Mexico and Canada, effective April 2.

Ryan Lee, Chief Analyst at Bitget Research, explained that such protectionist actions typically create cautious attitudes among investors. Lee highlighted that cryptocurrencies now track traditional markets closely, pointing to Bitcoin’s correlation of 0.67 with the Nasdaq index, implying market volatility could affect crypto values.

btc-pearson-correlation-30d
Source: The Block

Consequently, last week Bitcoin fell around 6%, according to price data from ETHNews, and the broader GMCI 30 cryptocurrency index lost approximately 10.6%. CoinShares noted these declines caused assets under management in global Bitcoin investment products to dip to $114 billion, marking their lowest level since the U.S. presidential election in November.

Nevertheless, U.S.-based investors contributed heavily to last week’s inflows, totaling $204 million. Switzerland and Germany also registered gains, adding $14.7 million and $9.2 million respectively. Hong Kong and Brazil saw small net withdrawals during the same period.

hour_Vol_USDT_240_31743440421175
Source: Cryptocompare

Bitcoin-focused funds remained dominant, pulling in $195 million in net inflows last week. Conversely, short-Bitcoin positions continued losing investor interest, witnessing net outflows of $2.5 million.

gm30-index-top-30-tokens
Source: The Block

Additionally, altcoin investment products gained after five weeks of losses, accumulating $33 million in total. Ethereum led altcoins with $14.5 million inflows, followed by Solana ($7.8 million), XRP ($4.8 million), and Sui ($4 million).

Despite current uncertainties, investment in crypto products indicates ongoing cautious interest from global investors.



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